Insights

The Dutch government has unveiled a new law designed to bolster and regulate the defence and security industry in the Netherlands. The proposed Defence and Security-Related Industry Resilience Act (Defence Resilience Act) is directed at companies active in these industries and contains a number of provisions aimed at improving Dutch armed forces operations. Structured around three major pillars, the act introduces a new sector-specific foreign direct investment (FDI) screening mechanism, lays out a framework for certifying Dutch companies to compete for foreign defence contracts, and draws up measures to enhance the Dutch defence industry's production, innovation and international competitiveness in general. Companies active in defence and security-related sectors can expect changes in M&A processes, new opportunities for international contracts, and a stronger regulatory framework that aligns with EU, US and Canadian standards. This could lead to increased economic activity coupled with more regulatory hurdles and government supervision.

A bill amending the statutory shareholder dispute resolution proceedings (geschillenregeling), which we reported on in our earlier update, has been adopted by parliament and will enter into force on 1 January 2025. The proceedings provide mechanisms for resolving disputes among shareholders in Dutch companies, in particular through a forced exit. The amendments aim to enhance the effectiveness of these proceedings.

In previous articles, we looked at several key aspects of the Dutch restructuring scheme (known as the "WHOA"), including: how the scheme operates; the ban on appealing lower court decisions; combining WHOA and US plans; and how the scheme works in practice. In other jurisdictions, insolvency proceedings similar to the WHOA are increasingly used to settle mass damages claims. A recent noteworthy example concerns Purdue Pharma, which initiated Chapter 11 proceedings to restructure its debts, consisting for a large part of mass damages claims arising from its role in the opioid crises. The WHOA may also have this potential to be used as an instrument to settle mass damages claims.

De Brauw advised G Square on the contemplated sale of its portfolio company, the Duomed Group to Palex Medical through execution of a put option agreement. The Duomed Group is a dynamic organization with a well-established reputation and is active in consultancy, sales, integration, training and technical support of medical technology and devices for hospitals and medical practices. The Duomed Group is active in Denmark, Sweden, The Netherlands, Belgium, Luxembourg, France, Switzerland, the UK, Serbia and Slovenia. The envisaged transaction would form a truly pan-European platform, providing medical technology equipment and solutions across Northern, Western, and Southern Europe

De Brauw is advising Aquiline Capital Partners on the sale of its stake in Quintes, one of the largest independent insurance brokers in the Netherlands, together with the other shareholders being Gijsbert van de Nieuwegiessen (founder) and key management, to Brown & Brown, Inc.

De Brauw advises Astorg in connection with the announcement of the successful closing of the Normec Continuation Fund, capitalized by lead investors CVC Secondary Partners, Pantheon, Lexington Partners, and Eurazeo, alongside a diverse group of additional investors, including sovereign wealth funds, pension funds, asset managers, and family offices.