Notification of foreign investments
Article 5
1. Member States shall notify the other Member States and the Commission through the cooperation mechanism of any foreign investment in a Union target established in their territory to which Article 4(15) and any of the following criteria apply: (a) the foreign investor or the foreign investor’s subsidiary in the Union is directly or indirectly controlled by the government, including state bodies, regional or local authorities or armed forces, of a third country, including in the form of ownership structure, significant funding, special rights or state-appointed board directors or managers; (b) the foreign investor, a natural person or an entity controlling the foreign investor, the beneficial owner of the foreign investor, any of the subsidiaries of the foreign investor, or any other party owned or controlled by, or acting on behalf or at the direction of, such a foreign investor is subject to Union restrictive measures pursuant to Article 29 TEU and Article 215 TFEU; (c) the foreign investor, a natural person or an entity controlling the foreign investor, the beneficial owner of the foreign investor, or any of the foreign investor’s subsidiaries was involved in a foreign investment which was previously screened by a Member State and was not authorised or was authorised subject to mitigating measures, which were significantly or repeatedly not complied with; to determine that, the notifying Member State shall rely on information available to it, including the information contained in the secure database referred to in Article 18 and information provided by the foreign investor on that matter. 2. Member States shall notify the other Member States and the Commission of any foreign investment in a Union target in their territory where they initiate an in-depth investigation in the framework of their screening procedures, where either of the following conditions are met: (a) the Union target is active in a project or programme of Union interest, as listed in Annex II; (b) the Union target has one or more subsidiaries in at least one other Member State, or is part of a group that has one or more subsidiaries in at least one other Member State. 3. Member States shall notify the other Member States and the Commission of any foreign investment in their territory where, in exceptional cases, they intend to impose a mitigating measure or to prohibit or unwind the transaction without an in-depth investigation. The conditions set out in paragraph 2, points (a) and (b), shall also apply to this paragraph. 4. Foreign investments notified pursuant to paragraph 1 shall not be notified pursuant to paragraph 2 or paragraph 3. 5. A host Member State shall notify the other Member States and the Commission of any foreign investment that falls within the scope of its screening mechanism but is not covered by paragraph 1, 2 or 3 of this Article, if it considers that the foreign investment could negatively affect security or public order in at least one other Member State, especially where the Union target has significant operations in other Member States, or belongs to a corporate group that consists of two or more entities in different Member States which are covered by Article 4(15), points (a) to (g). Any such notification shall be duly justified.