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Future expansion of the Vifo Act: stricter Control on Foreign Investments:

Since June 1, 2023, the Security, Mergers, and Acquisitions Act (Vifo Act) has been in effect. This law ensures that investments and acquisitions in the Netherlands do not pose a risk to national security. This is crucial because other countries are increasingly attempting to gain access to Dutch high-tech knowledge. For this reason, Minister of Economic Affairs Beljaarts has decided to further tighten the law. As soon as this change enters into force we shall update this blog.

What is the Vifo Act?

The Vifo Act requires companies to have their investments and acquisitions reviewed if they involve sensitive technology. This means that the government assesses whether an acquisition or investment endangers national security. Examples include companies working with chip technology or military goods.

What is changing?

Until now, only a limited number of technologies were subject to this review. However, based on the law, the government can add new technologies that are essential for defense, intelligence, and security services or for ensuring the availability of critical products. Therefore, the list is being expanded with six additional technologies:

  1. Advanced Materials Technology – The development of new materials with improved properties, such as extra strong or extremely lightweight materials.
  2. Artificial Intelligence (AI) – Computer systems that can make autonomous decisions and learn from data.
  3. Biotechnology – Technology that applies scientific principles to living organisms or biological processes, such as for developing medicines.
  4. Nanotechnology – The deliberate manipulation and control of materials on an extremely small scale (atoms and molecules) to enable new applications.
  5. Sensor and Navigation Technology – Technology used in advanced sensors and autonomous vehicles.
  6. Nuclear Technology for Medical Use – The use of radioactive substances for medical diagnostics and treatments.

Why is this important?

With this expansion, the government aims to prevent the Netherlands from becoming vulnerable to foreign influences that could harm its security and economy. Companies working with these technologies will now need to obtain approval before being acquired by or investing in foreign entities.

More information

By including six new technologies under the security review, more companies may be confronted with the Vifo Act. Do you have questions or need legal advice regarding the Vifo Act or its impact on business operations? Contact Job Bezemer, corporate law attorney and specialist in Vifo Act.

“At Kneppelhout, successfully completing a merger or acquisition is celebrated with a champagne moment. This positive touch is one of the reasons why I enjoy working in this specific legal field so much.”

Job Bezemer

Job Bezemer
Partner, Lawyer

Mobile      +31 (0) 6 427 813 78
E-mail       jbz@kneppelhout.nl

 

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