EU foreign subsidy rules may focus more on bigger deals amid red tape concerns

(Corrects in paragraph 5 to 'mandatory scrutiny of' from 'mandatory approval for')

By Foo Yun Chee

BRUSSELS, July 14 (Reuters) - European Union rules targeting unfair non-EU subsidies used to acquire European companies could be revised to let regulators focus on larger deals after concerns were raised about excessive red tape, the European Commission said on Tuesday.

The EU executive, which enforces the bloc's competition rules, said feedback from stakeholders on the Foreign Subsidies Regulation, in force since 2023, highlighted concerns about the complexity of the regime and the administrative burden.

The FSR marked a toughening of Europe's stance towards foreign state-backed acquisitions, amid concerns that subsidised buyers from China in particular could gain an unfair advantage in acquiring strategic European assets.

"We will continue listening to calls for simplification and strengthening awareness, while ensuring that the FSR remains a strong and effective shield for our market," EU industry chief Stephane Sejourne said in a statement.

The Commission said it may increase the current €500 million ($573 million) EU turnover threshold that triggers mandatory FSR scrutiny of mergers and acquisitions, and could introduce a simplified review process for certain transactions.

The FSR, which also applies to public procurement contracts worth at least €250 million, could be revised to make it easier for companies to obtain waivers limiting the disclosure of information on certain foreign subsidies.

The proposed changes will be published in the autumn for stakeholder feedback and are due to be adopted in 2027.

($1 = 0.8731 euros)

(Reporting by Foo Yun Chee. Editing by Mark Potter)