Screening of Foreign Direct Investments in Sweden- new rules expected soon
The Swedish Government has proposed far-reaching rules on Foreign Direct Investments (FDI). The FDI Act, which is suggested to apply to transactions and investments closing as of 1 December 2023, significantly expands the Swedish Government’s current powers to scrutinize foreign investments. Given its broad scope, it will no doubt impose an additional administrative burden on many transactions and also minority investments in Sweden (including a notification duty also for Swedish and EU investors) and lead to delays in closing times. Non-compliance may have severe consequences, including hefty fines, prohibitions and divestitures.