On May 4, 2021, a new Danish Act on Screening of Foreign Direct Investments (FDI) was adopted by the Danish Parliament. The Act can be viewed as a response to the EU FDI Regulation from 2019, which aims to protect European companies of importance to public order and security from foreign investors taking control over key technologies and critical functions within the EU.
The Danish Act on Screening of Foreign Direct Investments contains several comprehensive measures against foreign direct investments. The question is how these measures, in practice, will affect foreign investors in Denmark.
This paper reviews and analyzes the most important parts of the Danish Act on Screening of Foreign Direct Investments and examines whether the Danish screening regime is in line with other EU countries’ screening mechanisms. The paper also addresses the challenges of the Act’s provisions on 1) which investors are subject to the Act 2) when does an investor obtain control over a Danish entity and 3) when can an investment be considered to pose a threat to national security and public order.
The Danish Act on Screening of Foreign Direct Investments contains several comprehensive measures against foreign direct investments. The question is how these measures, in practice, will affect foreign investors in Denmark.
This paper reviews and analyzes the most important parts of the Danish Act on Screening of Foreign Direct Investments and examines whether the Danish screening regime is in line with other EU countries’ screening mechanisms. The paper also addresses the challenges of the Act’s provisions on 1) which investors are subject to the Act 2) when does an investor obtain control over a Danish entity and 3) when can an investment be considered to pose a threat to national security and public order.