The number of foreign takeovers of EU firms in potentially sensitive sectors has been relatively stable over time but the average deal value has increased. That could the an argument for increased screening of FDI into the EU, however investment patters in individual Member States vary across different types of investors, the sectoral composition and the origin of the acquirer.
For FDI screening to be both effective and efficient, a place-based approach is required where the need for increased FDI screening is carefully balanced against the potential costs. That is one of the key conclusions in our recent study commissioned by the Danish Business Authority.
The study is based on a unique database on FDI flows into individual EU Member States during 2003-2016 and provides an overview of M&As by third country investors in potentially sensitive sectors and M&As by state-owned enterprises (SOEs). We have also used the experience from selected EU Member States to identify initiatives that can improve the efficiency of FDI screening procedures.
For further information, please contact Eva Rytter Sunesen