2010 Investment Climate Statement
Bureau of Economic, Energy and Business Affairs
April 2010
Report

Introduction

Denmark is characterized by political, economic and regulatory stability. It is a member of the European Union (EU) and Danish legislation and/or regulations conform to EU standards on almost all issues. Denmark is a social welfare state with a thoroughly modern market economy reliant on free trade in both goods and services. It is a net exporter of food and energy, but depends on raw material imports for its manufacturing sector. Within the EU, Denmark is among the strongest supporters of liberal trade policy. Denmark experienced an economic downturn during the current global economic crisis; modest GDP growth with rising unemployment is projected for 2010. The underlying macroeconomic conditions are sound and the investment climate is favorable. Denmark is situated strategically, linking continental Europe with the Nordic and Baltic countries. The transport and communications infrastructure is efficient. Denmark is among the world's leaders in industries such as information technology, life sciences, clean energy technologies, and shipping.

Openness to Foreign Investment

Denmark is a small country with an open economy. Denmark is highly dependent on foreign trade and international cooperation. Danish trade and investment policies are very liberal and encourage foreign investment.

In general, investment policies are forward-looking and aimed at fostering and developing businesses, especially in high-growth sectors. According to a 2008 business environment survey from the Economist Intelligence Unit (EIU), Denmark is rated as the most attractive nation for foreign investment in 2008 - 2012. Several factors are included in the survey and Denmark scores top marks in various categories such as the political and institutional environment, macroeconomic stability, policy towards private enterprise, foreign investment policy, financing and infrastructure. As of July 2009, the EIU rates Denmark as an AA country on its Country Risk Service with a stable outlook. Denmark ranked fifth on the Global Competitiveness Report 2009 - 2010 from the World Economic Forum and ranked fifth on the EIU Democracy Index 2008.

According to the Danish central bank, the total stock of foreign direct investment in Denmark was Danish Kroner (DKK) 693.3 billion (current prices, exclusive of pass-through investments; approx. equivalent to USD140 billion) in 2008, corresponding to 40% of GDP. U.S. investments of DKK 59.7 billion (approx. USD12 billion) in Denmark accounted for 8.6% of total FDI stock in 2008. The United States is the third largest foreign investor in Denmark along with Great Britain, surpassed only by Sweden (DKK 176.9 billion) and the Netherlands (DKK 85.7 billion).

The government agency "Invest in Denmark" is part of the Danish Trade Council and is situated within the Ministry of Foreign Affairs. The agency provides detailed information to potential investors. The website for the agency is www.investindk.com. Greenland Home Rule government's trade promotion agency, Greenland Expo, also has information for potential investors in Greenland. The website for the agency is www.greenlandexpo.com. SamVit, the organization charged with promoting economic growth in the Faroe Islands, provides information for potential investors in the Faroe Islands at http://samvit.info/index.php/invest-in-the-faroe-islands/.

The Danish central and regional governments encourage foreign investment on a national-treatment basis. There is no mandatory screening of foreign investment.

According to the Danish Competition Act, the Competition Authorities require notification of mergers and takeovers if the combined turnover of the participating companies exceeds DKK 50 million (approx. USD10 million). However, notification is not required if only one of the participating companies has turnover of more than DKK 10 million (approx. USD2 million). The EU Commission must approve large scale mergers.

There are certain restrictions on foreigners' acquisition of real estate in Denmark. EU citizens and companies from EU member states can purchase any type of real estate (except vacation properties) without prior authorization from the authorities. However, companies not domiciled in the EU and non-EU citizens who are not living in Denmark or have not previously been living in Denmark for at least five years in total, can only acquire real estate with the permission of the Danish Ministry of Justice. Permission is freely given to people with a Danish residency permit, except with regard to purchases of vacation properties. Purchases of designated vacation properties are restricted to citizens of Denmark.

See section regarding limits on foreign ownership and control in certain sectors for further information.

Index/Ranking

TI Corruption Perceptions Index 2009 / number 2 (nbr. 1 in 2008)

Heritage 2009 Index of Economic Freedom / number 8

World Bank Doing Business 2010 / number 6 (nbr. 5 in 2008)

World Economic Forum Global Competitiveness Report 2009 - 2010 / number 5 (number 3 in the previous two reports)

IMD World Competitiveness Scoreboard 2009 / number 5

Denmark is a major international development assistance donor. The Millennium Challenge Corporation (MCC) and the Ministry of Foreign Affairs signed a Memorandum of Understanding in 2008 to increase cooperation.

Conversion and Transfer Policies
Denmark has not introduced the Euro currency although it previously met the EU's economic criteria for membership. The government's response to the global economic crisis has pushed the annual budget deficit past the allowed threshold of 3% of GDP; it is projected to remain over that level through at least 2011. Danish voters twice (in 1992 and 2000) turned down the introduction of the Euro via national referendum. The Danish reservation concerning Euro participation can only be abolished by referendum. Although the current government has broached the possibility of holding another referendum on Euro adoption, a referendum has not yet been scheduled.

Denmark conducts a fixed exchange rate policy with the Danish Kroner linked closely to the Euro within the framework of ERM II. The Danish Kroner has a fluctuation band of +/- 2.25% of the central rate of DKK 746.038 per 100 Euro.

There are no restrictions on converting or transferring funds associated with an investment into or out of Denmark. Policies are intended to facilitate the free flow of capital and to support the flow of resources in the product and services markets.

Foreign investors can obtain credit in the local market at normal market terms, and a wide range of credit instruments is available.

Expropriation and Compensation
By law, private property can only be expropriated for public purposes, in a non-discriminatory matter, with reasonable compensation, and in accordance with established principles of international law. There have been no recent expropriations of significance in Denmark and there is no reason to believe that there may be significant expropriations in the near future.

Dispute Settlement

There have been no major disputes over investment in Denmark in recent years. The judicial system is extremely well-regarded and fair. The legal system is independent of the legislative branch of the government and is based on a centuries-old legal tradition. It includes written and consistently applied commercial and bankruptcy laws, and secured interests in property are recognized and enforced. The World Economic Forum's 2009-2010 Global Competitiveness Report, which ranks Denmark as the world's fifth most competitive economy, characterizes Denmark's judicial system as a notable competitive advantage. In addition, Denmark ranks highly among the evaluated countries for its protection of property rights (number 2), judicial independence (number 3) and intellectual property protection (number 6).

Monetary judgments under the bankruptcy law are made in freely convertible Danish Kroner. The bankruptcy law addresses creditors' claims against a bankruptcy in the following order: (1) costs and debt accrued during the treatment of the bankruptcy; (2) costs, including the court tax, relating to attempts to find a solution other than bankruptcy; (3) wage claims and holiday pay; (4) excise taxes owed to the government; and (5) all other claims.

Denmark is a member of the International Center for the Settlement of Investment Disputes (ICSID) and is a party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Subsequent Danish legislation makes international arbitration of investment disputes binding in Denmark. In addition, Denmark is a party to the 1961 European Convention on International Commercial Arbitration and to the 1962 agreement relating to the application of this Convention.

Performance Requirements/Incentives

Denmark adheres to the WTO Agreement on Trade-related Investment Measures (TRIMs) and performance requirements are applied only in connection with investment in hydrocarbon exploration, where concession terms normally require a fixed work program, including seismic surveys, and in some cases exploratory drilling, consistent with applicable EU directives.

Performance requirements are mostly designed to protect the environment, mainly through encouraging reduced energy and water use. Several environmental and energy requirements are systematically imposed on households as well as businesses in Denmark, both foreign and domestic. For instance, Denmark was the first of the EU countries, in January 1993, to introduce a carbon dioxide (CO2) tax on business and industry. However, there are certain reimbursement schemes and subsidy measures to reduce the costs for businesses, thereby safeguarding Danish competitiveness.

Performance incentives are available to both foreign and domestic investors. For instance, foreign and domestic investors in designated regional development areas may take advantage of certain grants and access to preferential financing. Investments in Greenland may be eligible for incentives as well.

Denmark does not offer favored treatment to foreign investors. Foreign subsidiaries located in Denmark can participate in government-financed or subsidized research programs on a national-treatment basis.

Right to Private Ownership and Establishment

A foreign or domestic private entity may freely establish, own, and dispose of a business enterprise in Denmark. The capital requirement for establishing a corporation (A/S) is DKK 500,000 (approximately USD 100,000 per mid-December 2009 exchange rate) and for establishing a private limited liability company (ApS) DKK 125,000 (approximately USD 25,000). No requirements apply as to the residency of directors and managers of A/S or ApS.

Since October 2004, a private entity may found a European public limited company (SE company). The legal framework of the SE company is to a large degree subject to national company law, but it is possible to change the nationality of the company without liquidation and re-founding. An SE company must be registered at the Danish Commerce and Companies Agency if the official address of the company is in Denmark. The minimum capital requirement is EUR 120,000 (approximately USD 175,000).

Like most other countries, Denmark imposes restrictions on establishing companies providing professional services (e.g., legal, accounting, auditing, and medical services). Danish professional certification and/or local Danish experience to practice in Denmark are required. In some instances, Denmark may accept an equivalent professional certification from other EU or Nordic countries on a reciprocal basis.

Establishment of new, large department stores outside city centers is on a non-discriminatory economic needs-test basis and has to be approved by the local authorities.

Ownership restrictions are applied in the following sectors:

Hydrocarbon exploration: Requires 20% Danish government participation, but on a "non-carried interest" basis.

Defense materials: The law governing foreign ownership of defense companies (L503 of July 6, 2006) stipulates that the Minister of Justice has to approve foreign ownership of more than 40% of the equity or more than 20% of the voting rights in a defense company doing business in Denmark. The approval will be granted unless there are foreign policy considerations or security issues weighing against approval.

Aircraft: Unless a waiver is granted, non-EU physical and legal persons may not directly own or exercise control over aircraft registered in Denmark.

Ships registered in the Danish International Ships Register (DIS) must, as a general rule, be Danish-owned. Ships owned by Danish citizens, Danish partnerships or Danish limited liability companies are eligible for registration. Ships owned by EU or EEA entities with a genuine link to Denmark are eligible for registration. Also, foreign companies with a major Danish influence can register a ship in the DIS.

Protection of Property Rights

Property rights in Denmark are well protected by law and in practice. Intellectual property protections in Denmark are particularly well regarded. Denmark adheres to key international conventions and treaties concerning protection of property rights. The WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) has been ratified. The WIPO internet treaties, the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT), have been signed, ratified, and are in force.

Real estate is for the most part financed through the well-established Danish mortgage bond credit system, the security of which almost compares to that of government bonds. To comply with the covered bond definition in the EU Capital Requirements Directive (CRD), the Danish mortgage banking regulation was amended effective July 1, 2007.

With the amended Danish mortgage banking regulation, commercial banks now have the same opportunities as mortgage banks and ship-financing institutions to issue covered bonds. Only issuers that have been granted a license from the Danish financial supervisory authority are able to issue Danish covered bonds.

Secured interests in property are recognized and enforced in Denmark. All mortgage credits in real estate are recorded in local public registers of mortgages. Except for interests in cars and commercial ships, which are also publicly recorded, other property interests are generally unrecorded. The local public registers are a reliable system of recording security interests.

Transparency of the Regulatory System

Danish laws and policies granting national treatment to foreign investments are designed to support the Danish goal of increasing FDI in Denmark.

Denmark applies high standards with regard to health, environment, safety, and labor laws. These policies are universally applied and are not used to impede foreign investment.

Danish corporate law is generally in conformity with current EU legislation.

The legal, regulatory and accounting systems are relatively transparent and in accordance with international standards.

Bureaucratic procedures are streamlined and transparent, and proposed laws and regulations are published in draft form for public comment.

In June 2007, the Danish Parliament enacted a major bill on Controlled Foreign Company (CFC) taxation and private equity funds. The bill reduced the corporate tax rate from 28% to 25%. The bill also limited tax speculation for private equity funds. Additionally, the bill capped deductibility of net financing costs and changed taxation of dividend and liquidation distributions. Furthermore, the bill included amendments to the taxation of CFCs indirectly forced upon the Danish government by a European Court of Justice (ECJ) ruling in the British "Cadbury-Schweppes" case. The Danish rules now include specific criteria for when CFC taxation will be triggered, such as the relative size of financial assets and CFC income.

Efficient Capital Markets and Portfolio Investment

Denmark has fully liberalized foreign exchange flows, including those for direct and portfolio investment purposes. Credit is allocated on market terms and is freely available.

The Danish banking system is under the regulatory oversight of the Financial Supervisory Authority. Like banks in many other countries, Danish banks experienced significant turbulence in 2008 - 2009. Two small/mid-sized banks failed, other banks merged to avoid collapse. In October 2008, the Danish Parliament passed legislation that calls for all private banks and the Danish government to finance jointly a "safety net" program that provides unlimited guarantees for bank deposits and certain classes of bank creditors through September 2010. Both Danish and foreign deposits are covered by the legislation. A total of 133 banks joined this so-called "Bank Package." In spite of this legislation, some local businesses reportedly complain of tight lending practices and difficulty in obtaining bank financing. In January 2009 a second initiative was passed, "Bank Package 2," which provided government lending to financial institutions in need of capital to uphold their solvency requirements. Only Danish banks were eligible for inclusion in the second initiative. A total of 43 applicants received DKK 46 billion (approximately USD 9 billion) through this initiative. A government-run Financial Stability Company was initiated to take over failed banks. By the end of 2009 seven banks have been split up and sold or taken over by the Financial Stability Company.

A possible barrier for foreign banks in Denmark is that the national payment system, PBS, is jointly owned by Danish banks; it is difficult for foreign banks to gain access. The assets of the three largest Danish banks -- Danske Bank, Nordea Bank Danmark, and Jyske Bank -- constitute approximately 75% of the total assets in the Danish banking sector. The major Danish banks are rated by international agencies and their creditworthiness is high by international standards.

Differentiated voting rights - A and B stocks - are used to some extent and several Danish companies are controlled by foundations, which can restrict potential hostile takeovers including foreign takeovers.

The Danish stock market functions efficiently and in 2005, the Copenhagen Stock Exchange became part of the integrated Nordic and Baltic market place, OMX Exchanges, headquartered in Stockholm. Besides Stockholm and Copenhagen, OMX also includes the stock exchanges in Helsinki, Tallinn, Riga and Vilnius. In order to increase the access to capital for primarily small companies, the OMX in December 2005 opened a Nordic alternative marketplace -- "First North" –- in Denmark. In February 2008 the exchanges were acquired by the Nasdaq OMX Group.

Competition from State Owned Enterprises (SOEs)

SOEs hold dominant positions in rail, energy utility and broadcast media in Denmark. Large scale public procurement must go through public tender in accordance with EU legislation. Competition from SOEs is not considered a barrier to foreign investment in Denmark. The World Economic Forum's 2009 - 2010 Global Competitiveness Report ranks Denmark as number 3 when it comes to lack of favoritism in government officials' decisions and finds that Denmark has among the best functioning and most transparent institutions in the world.

Corporate Social Responsibility

A survey from 2000 found the Danish population to be the most willing among the European countries to pay more for products and services which are socially or environmentally responsible. Surveys from the international business school IMD in Switzerland rank Denmark at the top when it comes to corporations' social, environmental and ethical conduct. All major companies in Denmark have a CSR strategy. The Danish government has launched an action plan to advance CSR in Denmark and recommends following the principles of the UN Global Compact, UN PRI and OECD guidelines for multinational enterprises.

Political Violence

Denmark is a politically stable country. Incidents involving politically-motivated damage to projects or installations are very rare in Denmark.

Corruption

According to the 2009 Corruption Perceptions Index by Transparency International, Denmark is the second least corrupt country in the world. In 2008 it was tied for the number 1 position as the least corrupt country; the Danish rating did not change in the 2009 survey, but New Zealand improved its rating to take sole possession of the top spot. Transparency International has local representation in Denmark.

Corruption is covered under the Danish Penal Code and the Ministry of Justice is responsible for combating corruption. Penalties for violations range from fines to imprisonment of up to four years for a private individual's involvement and up to six years for a public employee's involvement. Since 1998, Danish businesses cannot claim a tax deduction for the cost of bribes paid to officials abroad. Denmark is a signatory of the OECD Convention on Combating Bribery and the UN Anticorruption Convention.

Bilateral Investment Agreements

Denmark has concluded investment protection agreements with the following 45 countries and Hong Kong: Algeria, Albania, Argentina, Belarus, Bolivia, Bulgaria, Czech Republic, Chile, China, Croatia, Egypt, Ethiopia, Estonia, Ghana, Hungary, India, Indonesia, Kuwait, Latvia, Lithuania, Malaysia, Mexico, Mongolia, Mozambique, Nicaragua, North Korea, Pakistan, Peru, the Philippines, Poland, Romania, Russia, Slovakia, Slovenia, South Korea, Sri Lanka, South Africa, Tanzania, Tunisia, Turkey, Uganda, Ukraine, Venezuela, Vietnam, and Zimbabwe. Further, Denmark has signed investment protection agreements with Bangladesh, Bosnia Herzegovina, Brazil, Cuba, Laos, Montenegro, Morocco and Serbia, but these agreements await ratification.

The U.S.-Danish Bilateral Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income was concluded in 1999 and came into force on March 31, 2000. In May 2006, a protocol was signed to amend the existing tax treaty between Denmark and the United States. The most important aspect of the protocol relates to the elimination of withholding tax on cross-border dividend payments.

OPIC and Other Investment Insurance Programs

OPIC programs are not applicable to U.S. investments in Denmark, but may be used by at least 95%-U.S.-owned subsidiaries in Denmark to support their investments in qualifying countries.

Denmark is a member of the Multilateral Investment Guarantee Agency (MIGA).

Labor

The Danish labor force is generally stable, well-educated and efficient. Language skills are good and English is considered a natural second language among a very high proportion of Danes. Furthermore, the Danish labor market is flexible. Danish rules on the hiring and firing of employees are not burdensome, which enables employers to adjust the workforce quickly to changing market conditions.

The Danish labor force amounts to approximately 2.9 million persons. Denmark's EU-harmonized unemployment rate was about 3% in 2008, which was very low both historically as well as compared to the EU and OECD averages. Unemployment has since increased and is projected to be about 7.5% by the end of 2009, which is still relatively low compared to EU and OECD averages following the 2008 - 2009 economic crisis. Unemployment is expected to increase through 2011.

The public sector in Denmark is large and accounts for approximately 32% of the employment at full-time equivalence.

The labor force participation rate for women is among the highest in the world. In 2008, 76.3% of working-age women participated in the labor force and the employment rate was 74.5%. The male labor participation rate and employment rate were 81.8 and 80.2% respectively.

The Danish labor force is highly organized, with approximately 80% belonging to a union. Labor disputes and strikes occur only sporadically. As a general rule, labor/management relations are excellent, based on dialogue and consensus rather than confrontation. Working conditions are laid down in a rather complex system of legislation and organizational agreements. Most aspects of wage and working conditions are determined through collective bargaining rather than legislation.

The contractual workweek for most wage earners is 37 1/2 hours. By law, employees are entitled to five weeks of paid annual leave. However, the majority of the labor force has the right to six weeks of paid annual leave through labor market agreements.

Denmark has well-functioning unemployment insurance and sick-pay schemes, which are not financed by employers. Maternity leave in Denmark is 52 weeks to be divided between the parents as they see fit and employers are obliged to pay salary for at least 14 weeks.

Danish wages are high by international standards, and have contributed to the use of capital-intensive technologies. However, employer contributions to social security (including health care) are very low. As a result, total employee costs for employers are lower in Denmark than in many other industrialized countries.

In general, work permits are not difficult to obtain for foreign managerial staff. However, permits for non-managerial workers from countries outside the EU (citizens of EU countries do not require work permits) and the Nordic countries are granted only if substantial professional or labor-related conditions warrant it.

Special rules, detailed in the so-called Positive List Scheme, apply to certain professional fields experiencing a shortage of qualified manpower. Foreigners who have been hired in the designated fields will be immediately eligible for residence and work permits. In 2010, professions covered by the Positive List Scheme include engineers, scientists, doctors, nurses, IT specialists, economists, lawyers, accountants and a wide range of other Master's or Bachelor's degree positions. The Pay Limit Scheme extends to positions with an annual pay of no less than DKK 375,000 (approximately USD 75,000) annually, regardless of the field or specific nature of the job. Persons who have been offered a highly paid job have particularly easy access to the Danish labor market.

Denmark also introduced a Green Card scheme to issue three-year residence permits to foreign nationals, allowing them to seek employment in Denmark. Permits are issued based on an individual evaluation using a point system. However, a residence permit issued under the Green Card scheme is not a work permit. If offered a job, the applicant must apply for a work permit. A work permit is only granted for research and specialist positions, as well as positions covered by the above-mentioned Positive List scheme.

Generally, personal income tax rates in Denmark are among the highest in the world. However, foreign employees and researchers may be subject to a favorable 25% gross tax rate in the first three years of working in Denmark. Compared with the general Danish progressive income tax system, this is an attractive incentive. Further information can be obtained from the Danish embassies or from the Danish Immigration Service (www.nyidanmark.dk).

Denmark adheres to the ILO conventions protecting worker rights.

Foreign Trade Zones/Free Ports

The only free port in Denmark is the Copenhagen Free Port, which is operated by the Port of Copenhagen. The Port of Copenhagen and the Port of Malmo (Sweden) merged their commercial operations in 2001, including the free port activities, in a joint company named CMP. CMP is one of the largest port and terminal operators in the Nordic Region; one of the largest Northern European cruise-ship ports; and occupies a key position in the Baltic Sea Region for the distribution of cars and transit oil. The facilities in the free port are mostly used for tax-free warehousing of goods imported, for exports, in transit trade and for distribution. Tax and duties are not payable until cargo leaves the Free Port. Also, the processing of cargo and the preparation and finishing of imported automobiles for sale can freely be set up in the Free Port. Manufacturing operations can be established with the permission of the customs authorities, which is granted if special reasons exist for having the facility in the Free Port area. The Copenhagen Free Port welcomes foreign companies establishing warehouse and storage facilities.

Foreign Direct Investment Statistics

The total stock of FDI in Denmark corresponded to 40% of GDP in 2008 (current prices, exclusive of pass-through investments). Conversely, Danish investment abroad corresponded to 52% of GDP in 2008. The largest foreign investor in Denmark is Sweden, followed by the Netherlands, the United States and Great Britain. U.S. investment accounted for 8.6% of the total 2008 FDI stock in Denmark, up from 8.1% in 2007.

Major U.S. direct investment in Denmark is in telecommunications, information technology, biotechnology, oil exploration, financial services and facility services. During recent years, several U.S.-based private equity funds have invested in Danish firms such as ISS, the Legoland Parks, and TDC.

Over 400 U.S. companies have subsidiaries in Denmark, of which several are regional headquarters.

The main destinations for Danish FDI are Sweden (19.2%), the United States (8.8%), Germany (7.8%) and Great Britain (6.5%). The EU held 62.6% of the stock in 2008.

Following are tables for foreign direct investment at current prices. Pass-through investments are not included since they have no or very little real-economic significance for the pass-through country. The source of data is the Danish Central Bank, www.nationalbanken.dk, based on average exchange rates of DKK 5.45 = 1 USD in 2007 and DKK 5.10 = 1 USD in 2008.

Foreign Direct Investment in Denmark

Table 1. FDI in Denmark, STOCK

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2007
2008
Total DKK, billions
687.8
693.3
Total USD, billions
126.2
135.9
% of GDP
41%
40%



% of Total, Origin:
2007
2008



USA
8%
9%



EU
72%
75%
-Sweden
25%
26%
-Luxembourg
10%
9%
-Netherlands
10%
12%
-United Kingdom
8%
9%
-Germany
6%
6%



Norway
7%
6%



% of Total, Sector:
2007
2008
(Sector of the Danish enterprise)


Agriculture, Fisheries, Raw Materials
3%
3%
Manufacturing
13%
16%
Energy and water supply, and construction
2%
2%
Trade, Hotels, etc.
15%
14%
Transport, Post, Telecommunication
11%
11%
Financial Intermediation
15%
15%
Business Service
33%
32%
Real Estate
Commercial and Non-Commercial
4%
4%


Danish Direct Investment Abroad

Table 2. Danish FDI Abroad, STOCK

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2007
2008
Total DKK, billions
798.1
902.1
Total USD, billions
146.4
176.9
% of GDP
47%
52%



% of Total, Destination:
2007
2008



USA
9%
9%



EU
57%
63%
-Sweden
12%
19%
-France
5%
6%
-Netherlands
5%
5%
-United Kingdom
9%
6%
-Germany
8%
8%



Norway
10%
6%



% of Total, Sector:
2007
2008
(Sector of the Danish enterprise)





Agriculture, Fisheries, Raw Materials
6%
6%
Manufacturing
22%
31%
Energy and Water Supply, and construction
2%
2%
Trade, Hotels, etc.
9%
9%
Transport, Post, Telecommunication
15%
13%
Financial Intermediation
11%
6%
Business Service
32%
29%
Real Estate Commercial and Non-Commercial
3%
3%


Major FDI in Denmark by U.S. companies:

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Microsoft
IT
IBM
IT
HP/Compaq
IT
Intel
IT
Computer Sciences Corp., USA
IT
ADC Telecommunications Inc.
IT
Motorola
Telecom
Texaco
Energy
Amerada Hess
Hydrocarbon exploration
Ashland
Road Construction
Masco
Furniture and Sanitary Fittings
York Holding Corp.
Refrigerating Equipment
Tenneco Inc.
Automotive
3M
Tapes, Health Care and Pharmaceuticals
Pfizer
Pharmaceuticals
Merck, Sharp & Dohme
Pharmaceuticals
Eli Lilly
Pharmaceuticals
Sauer Inc.
Fluid Power
CP Kelco
Hydrocolloids
Doane Pet Care Co.
Pet Food
GE Capital
Financial Services
Biogen IDEC
Biotechnology

Among the biggest U.S. corporate takeovers in Denmark are Microsoft's acquisition of the Danish software company Navision in 2002 (USD 1.2 billion) and IBM's acquisition of Maersk Data in 2004 (estimated USD 400 million).

In May 2007, Greenland Home Rule and Alcoa signed a memorandum of understanding to study the feasibility of the construction of an aluminum smelter and associated hydropower generation and transmission facilities in Greenland. Upon completion, the Alcoa investment (estimated USD 2.5 billion) would be the largest U.S. direct investment ever in the Kingdom of Denmark. U.S. companies ExxonMobil and Chevron own approximately 48% of a partnership that, in October 2007, was awarded licenses for the exploration and exploitation of hydrocarbons off the western coast of Greenland.

Other FDIs in Denmark mostly come from Denmark's neighboring countries or other nearby countries, including Sweden, Iceland, Norway, Finland, Germany, and the United Kingdom. Most of those nations' major companies, and numerous smaller ones, have a presence in Denmark, either as regional headquarters, sales/marketing offices or in production. Some foreign companies with large investments in Denmark are Statoil (Norway); L.M. Ericsson (Sweden); Nordea (Sweden); Vattenfall (Sweden), APV (United Kingdom); Bayer (Germany), and Q8 Oil (Kuwait).

Several Danish companies have a presence in the U.S., both to get closer to the market and to gain access to the American Recovery and Reinvestment Act (ARRA) funds, some of which have been allotted to, amongst others, Vestas Wind Systems and Novozymes.

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