New Danish investment screening rules have now entered into force
The new Danish Act on screening of certain foreign direct investments, etc. in Denmark will apply to relevant investments and agreements that are completed from 1 September 2021. A large number of investments in and agreements with Danish companies will going forward require prior authorisation. A lack of authorisation entails a risk that an investment will be ordered to be divested, or that an agreement will be declared null and void.
On 4 May 2021, the Danish Parliament passed the first general Danish Act on screening of certain foreign direct investments, etc. in Denmark.
The Act provides that a large number of investments in and agreements with Danish companies and other entities made by "foreign investors", including both foreign companies and citizens and Danish companies and entities subject to foreign control or influence, from 1 September 2021 will require prior authorisation from the Danish Business Authority ("DBA") or the Danish Minister for Industry, Business and Financial Affairs.
The Act further provides that other investments in and agreements with Danish companies can be notified voluntarily to the DBA, and that investments and agreements, which are not notified, for up to 5 years after their completion may be investigated by the DBA or the Danish Minister for Industry, Business and Financial Affairs, and potentially be ordered to be divested.
Learn more about the rules when the Danish Chamber of Commerce (Dansk Erhverv) hosts a free webinar on 13 September 2021 from 1-3 pm with presentations from, inter alia, Plesner. Register for the webinar here.
Further information on the rules as well as notifications forms for the purpose of applications for authorisation for or notifications of investments and agreements as well as requests for so-called "pre-screenings" of contemplated investments and agreements can be found in English here.