In this article, Thomas Gj\u00f8l-Tr\u00f8nning and Caroline-Regitze Sosman from Bech-Bruun analyse the recent developments and trends in Denmark\u2019s FDI screening regime. They explore key statistics, emerging patterns and the strategic implications for foreign investors navigating the increasingly complex regulatory landscape.<\/p>\n\n\n\n\n\n
It has been nearly four years since Denmark implemented its foreign direct investment (FDI) screening regime. Over the past few years, as the number of foreign investments has surged drastically, this regime has become a crucial tool in the authorities\u2019 ability to prevent, as and if needed, the completion of foreign investments and the entering into of special financial agreements from posing a threat to national security and public order.<\/p>\n\n\n\n
Since its implementation during the summer of 2021, the Danish regime has undergone significant changes, including the broadening of the scope of application and the introduction of a two-phase screening process, similar to that used in other EU member states. As these rules have evolved, the regulatory environment for cross-border mergers, acquisitions, and other transactions involving a Danish business within one or more particularly sensitive sectors has become increasingly complex.<\/p>\n\n\n\n
While the screening process remains confidential, reports from the Danish Business Authority (the DBA) provide valuable insights for identifying the emerging trends and evolving enforcement practices within the framework. The following analysis sheds light on the key trends and strategic approaches shaping the Danish FDI landscape, incorporating relevant data and observations.<\/p>\n\n\n\n\n\n
Since the introduction of Denmark\u2019s FDI regime, there has been a steady increase in the number of cases reviewed. During the period from 1 July 2021 to 30 June 2023 (the cut-off date of the most recent statistics available), the DBA received a total of 358 cases, reflecting the high interest in Denmark as an investment destination and making Denmark among the leading countries with regards to the number of cases under FDI screening.<\/p>\n\n\n\n
However, the DBA and the Minister of Industry, Business and Financial Affairs have only intervened in two cases. In one case, approval was granted under specific agreed conditions, while in the other case, the investment was denied as the Minister assessed that the investment could pose a threat to national security or public order, which could not be mitigated by specific terms. The latter investment was subsequently approved by the Danish authorities, and, therefore, the current status is that no foreign investment has been banned under and pursuant to the Danish screening regime.<\/p>\n\n\n\n
The Danish Investment Screening Act in numbers (as of 30 June 2023):<\/strong><\/p>\n\n\n\n