• DEN CRG announced new rules on investment screening entered into force on 1 July 2021.
• For screening of foreign direct investments and special economic agreements in DEN.
• Foreign investors must therefore in some cases apply for permit for/notify investments and agreements with Danish companies/entities planned to be completed after 1 September 2021.

Overview

• The new rules consist of the investment screening act and three executive orders.
• Scheme designed as combination of statutory permit requirement for sensitive sectors (defense, dual-use, IT security, critical infrastructure and critical technology).
• Plus voluntary notification option for other sectors; it is foreign investor's duty to apply for permission for foreign direct investment or enter into special financial agreement.
• It is also foreign investor who can take advantage of the voluntary notification option.
• Foreign investors covered by screening scheme differ depending on whether it is an investment or agreement and sector to which the investment or agreement relates.
• Greenfield investments also covered by the law; DEN CRG has opportunity to intervene against investments, agreements that pose threat to national security or public order.

Other Aspects

• Guidance material on investment screening act, rules pursuant to it prepared; also re delimitation of investments, special financial agreements and greenfield investments.
• Contains information on procedures for prescreening, application and notification, etc.
• Foreign investors may apply for permission for investments, agreements planned to be completed after 1 September 2021; voluntarily notify those carried out after 1 September 2021.
• Application/notification made by filling and submitting relevant forms to DEN CRG.

Effectiveness

• New rules in force as of 1 July 2021.