Cross-Border Mergers and Acquisitions

CHAPTER 8 Managing National Reactions and Sovereignty Issues

Gilles Ourvoie

CHAPTER LEARNING OBJECTIVES—IN THIS CHAPTER, YOU WILL LEARN:

• The background factors that have an impact on foreign direct investment (FDI) policies
• The main elements of FDI restrictions
• The types of sectors considered to be sensitive and how this list evolves according to countries and history
• Potential approaches implemented from strategy to post-deal execution to comply with FDI restrictions or national sensitivity issues

CHAPTER SUMMARY

Nations are facing historic challenges in our current period of economic globalization, technological and scientific unification, and cultural homogenization. Political regimes, state organizations, and all the constituents of most countries on earth are struggling with the best way to preserve local equilibria and gain from the global movement of capital, ideas, and people. In most countries, conservative forces and extremists use nationalism as the political utopia of last resort, opposing the boundaries of the known to the risks of the distant and uncontrolled ...