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A1P1 and NSIA 2021 divestment: Court of Appeal (England and Wales) confirms no entitlement to full compensation for forced sale in LetterOne/Upp

Published on: 12 December 2025

Published by a LexisNexis Banking & Finance expert
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Article summary

R (on the application of L1T FM Holdings Ltd and Letterone Core Investments Sàrl) v Chancellor of the Duchy of Lancaster in the Cabinet Office (formerly Secretary of State for Business, Energy and Industrial Strategy) [2025] EWCA Civ 1528

What were the practical implications of the case?

In light of the recent Court of Appeal ruling in L1T FM Holdings, market participants should expect that compensation above the price realised on a forced sale is unlikely where a transaction is unwound following a divestment order under the National Security and Investment Act 2021 (NSIA 2021). Where there is a ‘reasonable relationship of proportionality’ between the value of the asset and the compensation awarded, that suffices to meet Article 1 of Protocol 1 (A1P1) of the European Convention of Human Rights (ECHR), which protects property rights. This judgment sits alongside the small number of cases that have reached the courts since the NSIA 2021 took effect in January 2022, and they already paint a consistent picture...

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