They can. The EU regulation does not depend on where the acquirer or bidder is based. It applies when a transaction involves an EU-established target or joint venture meeting the turnover thresholds, or when a bid is made in a large EU public tender. If the Bangladeshi group, its owners or its partners have received financial contributions from the Government of Bangladesh or another non-EU state, those contributions may need to be reported. A Bangladeshi buyer of a European business, or a Bangladeshi contractor in a European tender, should therefore screen for foreign subsidies before committing to a timetable.

Potentially many routine measures. Export cash incentives, refinancing and pre-shipment finance schemes, concessional loans from state-owned banks, tax holidays and reduced rates, duty exemptions in export processing zones and economic zones, government guarantees and preferential land allocations can all be financial contributions. Whether they are actually distortive is a separate legal question for the reviewing authority. Our task is to identify each measure accurately, explain its legal basis and terms, and ensure the record is complete. Context matters, so we document each measure separately. Underreporting is a greater risk than overreporting, because incomplete notifications can be rejected or penalised.

Under the EU regime, an acquisition, merger or creation of a full-function joint venture must be notified where at least one merging party, the target or the joint venture is established in the EU and has EU turnover of at least EUR 500 million, and the parties together received combined foreign financial contributions of more than EUR 50 million in the three years before signing. Who counts as a party depends on the type of deal. The way group entities are counted can be technical, so we work through the foreign subsidies calculation with EU counsel.

For EU public tenders with an estimated value of at least EUR 250 million, bidders must notify or declare foreign financial contributions where the bidder, its subsidiaries, holding companies and in some cases its main subcontractors and suppliers received at least EUR 4 million per non-EU country over the previous three years. The contracting authority cannot award the contract until the review is complete. For a Bangladeshi contractor or supplier in a consortium, this means the information must be ready when the bid is lodged, not after. Foreign subsidies preparation therefore belongs in the bid plan.

Falling below the thresholds removes the mandatory notification, but not all risk. The European Commission can start its own review of any foreign subsidies that may distort the internal market, including in completed transactions and smaller tenders, and it can request an ad hoc notification before closing in some situations. For deals with visible state involvement, such as funding from a state-owned bank, it is often sensible to prepare a short internal record anyway. That record also helps answer questions from counterparties, lenders and foreign investment authorities. Our team can prepare it quickly, and it is rarely wasted effort.

Bangladesh does not currently have a dedicated foreign subsidies control law comparable to the EU regulation. State-backed investment into Bangladesh is instead managed through the general investment framework, now administered by Invest Bangladesh, foreign exchange rules under Bangladesh Bank, sector licensing and, for larger transactions, merger review by the Bangladesh Competition Commission. Trade remedies such as countervailing duties against foreign subsidies are a separate area. Each needs its own planning. We advise state-linked investors on how these regimes apply to their entry and on any national security or sector sensitivity that may affect approvals.

It depends on the size of the group, the number of entities and how well past incentives were documented. A focused group with good finance records may be ready in a few weeks, while a diversified Bangladeshi conglomerate with many subsidiaries, banks and zone units may need considerably longer. Starting before term sheets are agreed is far easier than collecting information under a signing deadline. We usually begin with a short scoping exercise so management can see the likely workload and the information gaps before committing to a transaction timetable that depends on foreign subsidies clearance.

Yes. Lenders, consortium partners and sellers increasingly ask about state support in due diligence, and conditions precedent may refer to subsidy clearances. Disclosures also need to match what is said in financing documents and investor presentations. We review those documents for consistency, advise on allocation of regulatory risk in share purchase agreements and consortium agreements, and help negotiate conditions, long-stop dates and cooperation clauses. Clear drafting at this stage reduces the scope for disputes if a review is extended or commitments are required. We also check that disclosures match the warranties given to the counterparty.