Article
The Rain in Christmassy Spain: Spain Extends the Applicability of its FDI Rules on EU Entities Until 2024
28/01/2023
Published in Wolters Kluwer Competition Law Blog
Spain’s Screening Mechanism applies also to EU / EFTA resident entities when the target company is listed in Spain or the value of the investment in Spain is more than €500 million. The Spanish FDI authorities are open to valuation methodologies which are consistent with market reality. The most frequently used is comparing sales in Spain with worldwide sales and applying that ratio to the global value of the deal.
The existing rules have been extended for two years this time, until 31 December 2024. Previous extensions were for one year. Spain’s FDI Screening Mechanism will thus continue being applicable to buyers with EU / EFTA residents. It should be recalled that pursuant to Article 7(bis)(1)FDI Act, a UBO is any entity having a > 25% stake or EUMR-like control in the buyer. There can be more than two UBOs for these purposes.
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