FDI regimes - The impact of COVID-19 on deal-making

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FDI restrictions have been on the political agenda in Europe and further afield for at least the past year, and following the outbreak of COVID-19 and the changed economic landscape, the approach in jurisdictions across the world has mutated. FDI restrictions are no longer being used solely as a tool to address issues of national security, but also to combat so-called "adversarial capital", typically from jurisdictions perceived as potentially hostile, pursuing opportunistic M&A when asset prices are depressed as a result of the pandemic. At the same time, there are calls for Western governments to support "national champions", protect a wider range of industries and the COVID-19 crisis may also make it easier for acquirers to invoke a "failing firm defence".