Energy sector warned over strict legal investment rules

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Businesses or individuals looking to invest in the energy industry are being warned about strict Government rules which mean their acquisitions can be scrutinised or even blocked as a matter of national security if they don’t obtain the correct permissions.

The warning comes from solicitor and sector specialist Beth Margetson who says that those who complete an energy-related acquisition without correctly notifying the Government also face severe civil and criminal penalties under the National Security and Investment Act.

“Under the Act, the Government can intervene in certain acquisitions that may give rise to a risk to national security. They can impose certain conditions on an acquisition, or even unwind or block it completely. She added: “The NSI has in many ways been a game-changer for those looking to enter into, or expand within, the energy industry.

“Aside from the heavy penalties faced for approaching a deal incorrectly, there’s absolutely no doubt that investments into the right energy businesses are proving to be extremely lucrative in recent years. But transaction success only comes if the right advice is taken, and if the correct steps and processes have been followed.”

 

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