Deal Economics and Current Trends | International

In this podcast, Devon Bodoh starts the discussion with a look at why tax insurance is becoming increasingly important in global transactions. He describes the current era as one where “transactions are moving more and more towards public-style, no-indemnity deals” making “insurance really important across all disciplines”. He talks about examples of tax insurance in the context of the UK, European, US and Latin American markets.

The discussion then shifts to the OECD’s Pillar 2, a global tax initiative to ensure that multinational corporations pay at least the minimum amount of tax owed in all the jurisdictions in which they operate. Greg Featherman describes the impact of Pillar 2 on acquisition agreements, particularly as it relates to joint ventures. However, the lawyers conclude that the slow roll-out of Pillar 2 and uncertainty as to how different jurisdictions will apply it, make it difficult to assess its overall impact at this stage.