Screening of Foreign Direct Investments in Sweden- new rules expected soon
The Swedish Government has proposed far-reaching rules on Foreign Direct Investments (FDI) suggested to apply to transactions and investments closing as of 1 December 2023. The purpose of the proposed FDI Act is to prevent foreign direct investments that may harm national security, public order or public safety in Sweden. The proposed Act would significantly expand the Swedish Government’s current powers to scrutinize foreign investments. The proposed FDI Act will have significant implications for mergers, acquisitions and minority investments in companies in Sweden. The scope of the suggested legislation is wide; requiring investments made also by Swedish and EU investors to be notified. Non-compliance may have severe consequences, including hefty fines, prohibitions and divestitures.