The national security environment has deteriorated in recent years. As a result, the Foreign Direct Investment Review Act (FDI Act) was introduced in Sweden in December 2023. Investments in a wide range of Swedish companies may not be completed until they have been notified to and approved by the FDI authority. The Swedish FDI Act has a very broad scope, and many transactions are caught.
The Swedish FDI Act was introduced to prevent foreign direct investment that could jeopardise Sweden's security interests. If necessary, a foreign direct investment can be prohibited or subject to conditions. More than 550 transactions have been notified to the FDI authority. No transaction has yet been prohibited.
Both Swedish and foreign investors must notify investment that are within the scope of the FDI Act.
The Swedish FDI Act affects all types of M&A transactions says Daniel Wendelsson, Partner.
In this brief you can read more about the Swedish FDI Act.
Would you like to read more about Vinge's direct investment advice? Here you can find information on how we can assist clients.
