CELIS Country Note on Denmark, 2023

by Rebecca Vikjær-Andresen (Attorney and partner at Poul Schmith Law Firm) and Hussain Raja Abdullah (Lawyer at the Capital Region of Denmark)

Date of Publication 06.07.2023

Abstract

Since September 2021, investments in Danish companies have been subject to a new Danish investment screening mechanism. The screening is mandatory for investments of 10 % of the shares or voting rights in Danish companies within particularly sensitive sectors and activities such as defence, dual use, IT security, critical technologies, and critical infrastructure. An investment made by a Danish investor is not subject to screening unless the Danish investor is under control or significant influence by foreign persons or entities, including persons and entities from other EU Member States.

The regime includes an ex officio cross-sectoral screening of investments made by persons or entities from outside EU and EFTA if the investor acquires at least 25 pct. of the shares or voting rights in a Danish company. The same applies to persons or entities within EU and EFTA if they are under control or significant influence by persons or entities from outside EU and EFTA. Such investments can be submitted for voluntary screening.

While Denmark continues to welcome foreign investments, the learning curve has so far been steep for the Danish Business Authority and the Danish legal advisers in particular with regard to the scope of the mandatory screening.