Amendments to the Act on the Screening of Foreign Corporate Acquisitions: Ministry of Economic Affairs and Employment to become a national contact point
The Act on the Screening of Foreign Corporate Acquisitions has been amended based on the EU Regulation. The Act has also been amended to clarify the scope of its application. The amendments will enter into force on 11 October 2020.
National law will continue to be premised on a positive attitude towards foreign investments. However, authorities can monitor the ownership of companies considered essential in terms of the security of supply and national security and, if necessary, restrict foreign ownership in such companies.
The EU Regulation establishes a framework for the screening of foreign direct investments in the Member States and a mechanism for the exchange of information between the Member States and the Commission. The Regulation will apply in the territory of the Union from 11 October 2020, that is, the same date the amendments to the national law will enter into force.
New tasks to the Ministry of Economic Affairs and Employment
The Ministry will act as the national contact point for cooperation and exchange of information between EU Member States and the European Union, and matters relating to the implementation of the EU Regulation establishing a framework for the screening of foreign direct investments.
The Act also includes new provisions on the setting of conditions that attach to decisions of the Ministry of Economic Affairs and Employment regarding the approval of corporate acquisitions, inadmissibility of matters, circumvention of the Act, and the disclosure of secret information to public authorities. In addition, it will be necessary to apply for an advance approval by the Ministry of Economic Affairs and Employment when making corporate acquisitions in the security sector in the future.
Marjaana Aarnikka, Commercial Counsellor, Ministry of Economic Affairs and Employment, tel. +358 50 338 4350
Lasse Puroma, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 50 352 9585