New Investment Screening Regime in Denmark
AmCham Denmark, in partnership with the Confederation of Danish Industry (DI) and Kromann Reumert, invited members to a seminar on the upcoming investment screening regime in Denmark. The event was available both in-person and on-line and it was a pleasure to meet face-to-face again with the members who showed up.
On May 4th, the Danish Parliament passed a bill that introduces a cross-sectoral screening regime of foreign direct investments (FDIs). The Danish FDI Act will enter into force on 1 July 2021. The FDI screening regime addresses foreign investments in Danish companies, including mergers, acquisitions, minority investments, capital contributions, or other transactions. Thus, the regulation will have a significant impact on many Danish businesses, in particular those operating in “critical sectors” as well as foreign investors.
Partners from Kromann Reumert, Christian Lundgren, Bart Creve, Jeppe Kjelgaard and Andreas Riis Madsen introduced the new FDI screening regime, its practical implications for Danish businesses and foreign investors, and information about experience from similar regimes abroad.
The second part of the session was a panel debate including Stephen Brugger, AmCham, Peter Bay Kirkegaard, DI and Christian Lundgren, Kromann Reumert.
Some of the key issues highlighted from a business perspective were the importance of ensuring transparency and an even playing field between EU countries regarding the definitions i.e., critical infrastructure, technologies etc. Furthermore, it was underlined that the Danish authorities must secure regulatory clarity regarding the risks involved, especially a clear timetable and terms and conditions for future M & A transactions in order to prevent backlogs.
Click here to see the slides from the event.