SWEDEN Law and Practice Contributed by: Marcus Glader, Sebastian Örndahl, Noelia Martinez and Dagne Sabockis, Vinge
9. Foreign Direct Investment/Subsidies Review 9.1 Legislation and Filing Requirements Under the Swedish FDI Act, certain investments in Swedish entities conducting activities eligible for pro - tection must be notified to the Swedish Inspectorate for Strategic Products (ISP). Notification is mandatory where an investor acquires at least 10, 20, 30, 50, 65 or 90% of the voting rights in a Swedish undertak - ing which conducts activities eligible for protection, or gains influence over the management of such an undertaking by other means. Both direct and indirect influence may trigger a notification obligation. Viola - tions of the duty to notify may lead to administrative fines. The FDI Act covers a wide range of activities, including those related to dual-use items, sensitive personal or location data, military equipment, critical raw materi - als, strategic technologies, as well as certain schools, food businesses, and businesses within the transport or construction sectors.
The notification obligation lies with the investor. Trans - actions not subject to the mandatory filing obligation may nonetheless be investigated by the ISP if there is a reason to assume that the investment may have a detrimental effect on Sweden’s security or on public order or public safety in Sweden. In parallel, where the target company conducts activi - ties of importance to Sweden’s national security, the seller may be required to consult with the relevant supervisory authority before the ownership of that company is transferred to a new owner under the Swedish Protective Security Act (2018:585).
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