“The US decision on the Broadcom-Qualcomm deal should act as a wake-up call that business is about openness and trust,” shares Managing Partner Tan Chong Huat with The Business Times

RHTLaw Taylor Wessing’s Managing Partner Tan Chong Huat shared his views on “Doing business in a geo-protectionist environment” in this week’s The Business Times’ weekly column, Views from the Top.

This article was first published in The Business Times on 26 March 2018.

Doing business in a geo-protectionist environment

Monday, March 26, 2018

THIS WEEK’S TOPIC: How might Singapore companies combat rising economic nationalist tendencies when seeking to expand abroad?

Tan Chong Huat
Managing Partner
RHTLaw Taylor Wessing LLP

THE US decision on the Broadcom-Qualcomm deal should act as a wake-up call that business is about openness and trust.

Singapore companies should prioritise collaborations with countries which are open for business, and make sure they are viewed as loyal and reliable partners abroad. This is key to successful internationalisation of Singapore businesses.

Protectionist rhetoric has always been one of the key issues to be resolved in any cross-border M&A transaction.

In addition to targeting the right deals in an increasingly protectionist environment around the world, Singapore companies must determine very early on in the deal cycle whether the deal involves strategic assets that are likely to be subject to protectionist controls or local government hostility.

Not focussing on this issue early could potentially have a negative impact on the deal value and execution risk.