Investment screening in Denmark uses a phased approach to ensure that uncritical cases are quickly resolved.
In phase 1, the applicant must submit an application form and an ownership structure form before and after the agreement or investment is completed.
If the parties to the consultation do not indicate concerns regarding aforementioned aspects of the investment or agreement and the Danish Business Authority (DBA) has not identified any security risks in the case, the DBA will decide the case and issue an authorization or approval no later than 45 calendar days in phase 1. If the sector authority assesses that the case does not fall within the authorization requirements of the Investment Screening Act, the application is canceled in line with current practice.
Phase 2 is a supplementary phase that will only be initiated in special cases where the DBA assesses that there will be a need to conduct further investigations to uncover whether the transaction could potentially pose a threat to national security or public order. If phase 2 is opened, the DBA will notify the applicant, and the applicant will receive a number of clarifying questions and be asked to submit additional documents in the form of agreement documents and EU notification form if it is a foreign direct investment to be notified under the EU’s cooperation mechanism. The DBA will make a decision in the case, no later than 125 calendar days in phase 2.
If an application or notification is submitted to the Minister for Industry, Business and Financial Affairs, the Minister will commence negotiations with the Minister for Finance, the Minister for Foreign Affairs, the Minister for Justice the Minister for Defence and other relevant ministers. On the basis of such negotiations, the Minister for Industry, Business and Financial Affairs will make the final decision. The Investment Screening Act does not set a deadline for this part of the process.