London’s role as a financial centre for international deals depends largely on the expertise of counsel in some of the leading City firms. Capable of shepherding complex deals from conception to completion, you depend on expert knowledge of financial solutions, structural approaches to complex combinations and even the management of troublesome regulatory regimes. Among the most demanding regulatory regimes is US trade law. This regime creates tricky and slippery issues in any international deal. Getting expert assistance will continue to be important.
A look at some of the recent spectacular deal debacles – from CNOOC to DP World – might suggest that it is impossible to manage the risks of US trade laws in international deals. While some number of deals, no matter how well conceived, have the potential to become a political circus (Washington is, after all, home to them), the vast majority of the deals present reasonable and manageable risks. The secret is to recognise the risks early and know the issues well. Treat them with the same vigour as tax or finance issues.
