Insights and Analysis

Cross-border transactions amid evolving strategic priorities

04 November 2025

Key takeaways

Future successful foreign investments in energy assets will be based on resilient transaction structures, adept cross-jurisdictional regulatory guidance and holistic deal strategies.

Geopolitical tensions and the global race for energy security are reshaping how governments view energy assets, from battery tech and critical minerals to grid infrastructure. These assets are seen as matters of national importance and foreign investments in them are subject to more thorough regulatory review and political scrutiny. Governments face significant surges in energy demand, driven by the AI revolution, while shifting geopolitical alliances put a premium on supply reliability. This transaction environment poses significant challenges for traditional deal structures.

What’s happening

Escalating geopolitical tensions, including global competition for energy security
Energy assets, including battery technology, critical minerals, fuels, and grid infrastructure, are increasingly treated as matters of national interest
Heightened focus on foreign ownership of energy assets and energy supply security
As governments expand the definition of “strategic sectors”, deals involving these assets are triggering foreign investment reviews and political scrutiny

Why

Anticipated energy demand of the AI revolution and the fierce race for AI supremacy
Geopolitical conflicts and global energy supply disruptions
Uncertainty surrounding shifting political alliances

Why it matters

Traditional deal tools are being stress-tested
Foreign investment reviews are costly and time-consuming
Delays and disruptions can erode value or derail transactions
Deal enforcement may become a political bargaining chip

How we can help

Our team identifies and evaluates political and regulatory friction points and shapes transaction strategy to minimize risk and ensure compliance
We design resilient deal structures that anticipate regulatory and political intervention, including built-in protections such as reverse break fees, walk-away rights, and phased investments that preserve optionality in uncertain environments

What we do

Global Energy M&A Capabilities

Our global team of energy M&A lawyers provide strategic and tactical advice on all aspects of M&A transactions in over 45 offices around the world.
Our multidisciplinary industry focus enables us to identify and anticipate regulatory changes, market dynamics, and trends that can impact our clients’ transactions.

Global Energy Regulatory Capabilities

We operate at the intersection of business and government and our regulatory lawyers are experienced in evaluating M&A transactions to identify issues, including foreign direct investment concerns.
We provide early-stage risk assessment tailored to jurisdiction, sector, and investor profile.
Our regional experts are well connected in the jurisdictions relevant to our clients’ needs.