On 13 September 2023, the Swedish Parliament adopted a foreign direct investment review mechanism for Sweden (the “FDI Act”). The new FDI Act allows foreign direct investments to be screened for security risks and, if necessary, restricted or prohibited. The FDI Act will enter into force on 1 December 2023 and will apply to investments completed after this date (even if contracts are signed before 1 December 2023). Although the aim is to control foreign investments, Swedish and EU investors must also notify their transactions if the FDI Act is applicable. We expect the FDI Act to affect many M&A transactions.
Read more about the new rules and their impact here.