Minister of Defence Antti Häkkänen: A stricter control of foreign acquisitions would strengthen security

In line with the Government Programme, the Finnish Government will reform the Act on the Screening of Foreign Corporate Acquisitions so that risks relating to national security, security of supply and broad-spectrum threats are taken into account more effectively than at present. The Ministry of Economic Affairs and Employment has sent out for comments a government proposal to reform the legislation on foreign corporate acquisitions to meet the demands of today’s geopolitical environment and technological advances.

In the current Act on the Screening of Foreign Corporate Acquisitions, the entities subject to screening are divided into defence industry enterprises and other companies that produce or supply critical products or services. The new act, replacing the current act, would clarify the entities subject to screening and define them more precisely. It would also have a broader scope of application than the current act.

“Our security environment has deteriorated fundamentally and in the long term. The proposal is part of the Government’s efforts to strengthen Finland’s comprehensive security, resilience and security of supply and to prevent hybrid threats against us. The new act would give us better tools for screening and, if necessary, for limiting the transfer of influence to foreign investors when a company produces or supplies critical products or services,” Minister of Defence Antti Häkkänen said.

The legislative proposal was prepared in a cross-government working group, which was led by the Ministry of Economic Affairs and Employment and had also representation from the Ministry of Defence. The Ministry of Defence is active in the Ministry of Economic Affairs and Employment’s network for screening foreign corporate acquisitions and gives opinions on applications concerning proposed acquisitions in the defence sector. The legislative amendment would further improve the exchange of information between authorities and access to information.

Inquiries: Antti Vesala, Special Adviser to the Minister of Defence, tel. +358 295 140 099