Screening of foreign direct investments (FDI)

The security policy situation has become more complex in recent years. Many countries now have regulatory frameworks for screening foreign direct investments (FDI) to protect national security interests. In Sweden, the Swedish Screening of Foreign Direct Investments Act (the FDI Act) has been in force since December 2023.

Under the FDI Act, investments in companies operating in a wide range of sectors and areas must be notified and authorised by the Swedish Inspectorate of Strategic Products (ISP) before the transaction can be performed.

Both Swedish and foreign investors are subject to the notification obligation. In addition to the FDI Act, there is also a screening mechanism in the Swedish Protective Security Act for transfers of security-sensitive activities.

Our experience and expertise will secure your business

The assessments performed by public authorities under these regulatory frameworks are subject to stringent secrecy requirements. There is no case law from public authorities and courts. In order to know how the public authorities act and to be able to give accurate advice, it is therefore particularly important to have personal experience of these matters.

Vinge has extensive experience of successfully representing clients before ISP in conjunction with screenings of foreign direct investments under the Swedish FDI Act. Vinge also advises on issues relating to the screening mechanism in the Swedish Protective Security Act in connection with transfers of security-sensitive activities and other regulatory issues linked to the Swedish Protective Security Act.

Vinge has acted on behalf of foreign and Swedish investors in a large number of matters before ISP, including some of the very first in-depth Phase II screenings, negotiations on conditions of approval and self-initiated investigations by ISP of transactions already completed.

Vinge has a large team of lawyers with experience of successfully handling these matters for our clients.

What we can do to help:

• Analysing and advising on whether a company is engaged in activities covered by the Swedish FDI Act or the Swedish Protective Security Act
• Analysing and advising on whether a particular transaction triggers a notification obligation to ISP or to one of the supervisory authorities under the Swedish Protective Security Act
• Initial cross-border jurisdictional analysis regarding in which countries a transaction may need to be notified under national FDI rules
• Drafting and review of contractual clauses related to FDI