United States of America: Introduction of Foreign Merger Subsidy Disclosure Act (S 4322)

On 26 May 2022, the “Foreign Merger Subsidy Disclosure Act” outlining merger disclosure requirements was introduced to the United States (US) Senate. The Act would require any company operating in the US that is planning to merge with another organisation to disclose the received economic support from a foreign state. In particular, the entities will be required to inform the Federal Trade Commission (FTC) and the Department of Justice (DOJ) about any financial involvement, including subsidies, ownership, tax concessions or procurements a foreign government has granted them.