Key Considerations for Global Investors in the Defence Sector

Global investors continue to show strong appetite for the Danish defence sector, supported by a rapidly expanding European investment landscape. Majority investments by Bridgepoint in MyDefence and UMag Solutions, Fjord Defence Group’s acquisition of Scanfiber Composites as well as a series of foreign-backed funding rounds involving Danish defence technology companies demonstrate international investors seeking exposure to the sector. On the funding side, the Security Action for Europe (“SAFE”) instrument provides up to EUR 150 billion in EU-backed loans for defence procurement.  More broadly, the ReArm Europe Plan/Readiness 2030 aims to unlock up to EUR 800 billion in additional defence investment, while the European Commission’s Defence Readiness Omnibus seeks to facilitate that investment by simplifying the regulatory framework applicable to the defence industry. 

In this newsletter, partners Dan Moalem, Pernille Nørkær and Thomas Enevoldsen, and Associate Sumar Adely break down some of the key considerations for global investors in the Danish defence sector from a legal/regulatory perspective. Beyond the core approval regimes and recent legislative updates, we also cover key diligence areas from a process and substance perspective, including security clearances for the workforce and the practical limits of due diligence in a security-sensitive business.