International outlook | Market and investment perspective in 2023
Despite great distances , our international connections grow stronger . Our partners Jakob Hans Johansen and Teis Gullitz-Wormslev take the temperature of the international market and look at the sectors that can expect higher investments in 2023 .
In the first months of 2022 , we saw many cross-border transactions and cases . Since then , war and inflation have affected the global economy .
" International markets are changing rapidly . After years with intense activity , inter alia in the M & A field , the market has now returned to more normal levels . Many have talked of a complete halt to transactions and a deep recession , but that is not our experience from our international base in London . Here , there is still capital waiting to be invested , but the approach is more cautious and there is strong focus from investors on macro trends and sectors ," says partner Jakob Hans Johansen , one of the five partners in our London office .
Energy and technology on the agenda
Among the sectors that can expect increased investments in 2023 are the energy and technology sectors – and most obviously industries that address climate change .
" We are already witnessing , and will continue to see , heavy investments in the green transition from both businesses , financial institutions , governments , and consumers . Competition is fierce but we have many competent Danish companies , and it makes us a strong contender for investments ”, says partner Teis Gullitz-Wormslev .
Traditionally , Denmark – and the Nordic region in general – has been characterised by high stability and credibility . That is an even more important parameter in times of unrest when international players assess whether a Danish investment is worthwhile :
“ The more turmoil , the bigger the crisis . Investment is risky business , so the incentive to continue investing in Denmark is high . Furthermore , we have some of the most innovative green energy companies – not to mention the pharmaceutical industry , where we are second to none – and we are therefore in a strong global position when it comes to attracting investments ”, Teis says .
ESG and increased regulation
At global level , one agenda is overriding : ESG . Danish companies operating in international markets will generally have to prepare for greater ESG scrutiny .
“ Responsibility and sustainability have become a leading priority . Whether we are talking environment , social issues , or corporate governance , companies must meet greater requirements from a wide range of stakeholders , including customers and investors – otherwise you will fall behind ”, says Jakob .
In relation to merger control and investments , Jakob also points to stricter regulation . As an example , tightened FDI rules have created an increasingly complex regulatory environment for cross-border transactions .
Our London office
We have been present in London for more than 30 years , and international activity in and out of Denmark is becoming increasingly important . In response to this trend , we decided in 2021 to expand our London office to cover more practice areas and increase the number of staff .
It helps ensuring that we can assist clients in complex cases also in the future .
Jakob Hans Johansen Mob . + 45 61 61 30 32 jaj @ kromannreumert . com
Teis Gullitz-Wormslev Mob . + 45 61 20 35 36 two @ kromannreumert . com
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