FINLAND: Amendment of Law on Finland Foreign Acquisitions

Thursday April 19 2012

It has been reported that changes to the Finnish law on Finland Foreign Acquisitions will come into force on 1 June 2012. The new law, which replaces the 1992 Act on Finland Foreign Acquisitions, is aimed at attracting further Finland  foreign investment. Under the current rules, certain acquisitions of large Finnish companies may require follow-up clearance from the Ministry of Employment and the Economy, to protect essential national interests.

The new rules would reduce control, with monitoring only targeted at Finnish enterprises considered critical to securing vital functions within society. Only corporate acquisitions in the defence and dual-use goods sector would be subject, without exception, to advance confirmation by the public authorities. Other corporate acquisitions would be subject to declaration.

The new rules would distinguish between EU and non-EU investors. As regards the defence material industry, monitoring would cover all foreign owners. In other respects, monitoring would only apply to foreign owners domiciled outside the EU and EFTA states.

This information will be updated as more information becomes available