China, the United States and several EU Member States have all introduced legislation for the screening of foreign direct investments (FDIs). Implemented for protection of national security interests, the rules will have the countries screening FDIs across diverse sectors. The rules are akin to merger control regimes, but rather than safeguarding competition they are intended to protect national security interests.
Although there are differences from country to country, the rules often cover investments in sectors such as critical infrastructure, critical technologies, sensitive information, and the media. Moreover, most of them cover both direct and indirect investments, such as lending and provision of security or investing via domestic holding companies. Also any other way in which investors may gain influence on a critical entity is comprised.
In any investment across borders it will be relevant to check if the investment is required to be notified, screened and approved before it can be made. Failure to report a notifiable investment may lead to the roll-back of the investment and, in some cases, may be punishable by a fine or even imprisonment.
We advise on all aspects of screenings and approvals in connection with investments into and out of Denmark. Examples of our assistance include:
- Advising on relevant legislation in the various countries, e.g. as to whether your investment is subject to national FDI rules or not
- Drafting of notification and assistance in obtaining permission for the investment