Mergers and Acquisitions in Denmark
Mergers and Acquisitions in DenmarkUpdated on Wednesday 22nd April 2020
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Denmark offers numerous investment opportunities as it has one of the most developed economies in Europe. Foreign investors seeking to start a business in Denmark have several options, among which registering a new company, buying a shelf company or even buying an existing company on shares in an existing company. The latter falls under the merger and acquisition (M&A) procedures in Denmark. Purchasing a Danish company by merging with it or by acquiring it entirely has various advantages, among which owning a company with an established reputation on the local market.
M&A procedures fall under various laws which can be explained by our lawyers in Denmark.
You can also watch our video below for more information on mergers and acquisitions in Denmark:
Legislation related to merger and acquisition transactions in Denmark
The main laws governing mergers and acquisitions in Denmark are:
- - the Commercial Code;
- - the Competition Law;
- - the Employment Law;
- - the Intellectual Property Law;
- - the Sale of Goods Law;
- - the Income Tax Law.
Considering mergers and acquisitions can target both private and public Danish companies, in the case of public companies this type of transactions fall under the Securities Trading Law and the Takeover Act. Also, mergers and acquisitions between Danish and companies in EU countries fall under EU regulations on M&A transactions. Our Danish law firm can explain the differences between mergers and acquisitions related to the private and public sectors.
Merger and acquisition procedures in Denmark
A foreign investor or company can merge with one or more Danish companies by purchasing them partially or entirely. In the case of acquisitions, foreign investors or companies are allowed to buy shares in a Danish company. No matter the transaction, a thorough company due diligence process is required in order to evaluate the total worth of the Danish company’s assets.
The transaction itself will be completed by drafting and signing a sale-purchase agreement. The terms of the agreement must first be presented to the shareholders of the companies involved in the M&A deal and can also be negotiated.
In cases where the merger and acquisition transactions are above certain thresholds, the deal will be supervised by the Danish Competition Council.