The Regulation covers any foreign direct investment. This means, as defined by the European Court of Justice, an investment of any kind by a foreign investor aiming to establish or to maintain lasting and direct links between the foreign investor and the target company in order to carry out an economic activity in a Member State.
Foreign direct investment can take two different forms: greenfield, and mergers and acquisitions (M&As). International greenfield investment typically involves the creation of a new company or establishment or facilities abroad, whereas an international merger or acquisition amounts to transferring the ownership of existing assets to an owner abroad. Foreign investor means a natural person of a third country or an undertaking of a third country, intending to make or having made a foreign direct investment.