Defence sector investments and acquisitions – key facts about the Finnish FDI regulation

Defence sector investments and acquisitions – key facts about the Finnish FDI regulation

With EU member states implementing and expanding their foreign direct investment regimes and increasingly scrutinising reviews of foreign investments in critical sectors, the regulatory environment for cross-border investments and other change of ownership arrangements is more complex than ever before.

In many corporate transactions, it is necessary to consider whether the transaction could impact the national interests of Finland or another country and therefore require a regulatory filing with the authorities in one or more jurisdictions. As foreign direct investments (FDI) and cross-border corporate transactions more often require regulatory filings under different regulatory regimes and jurisdictions, it is increasingly important to carefully assess the implications of possible FDI regulatory filings on deal certainty and transaction timeline. It is also advisable to carefully plan the filing process and to customise the relevant deal terms appropriately.

Our experienced FDI regulation experts regularly perform FDI reviews and advise clients in authority proceedings related to investments and other ownership arrangements. We evaluate the applicability of the regulatory filing requirements as well as the likelihood of success and the potential risks of contemplated investments for our clients in the Finnish regulatory framework and determine how the filing requirements should be taken into consideration in the timeline and conditions of the transaction.

We know the changing FDI regulatory environment thoroughly. As our client, you will benefit from our extensive service offering, successful project management and recognised ability to execute complex transactions. In international regulatory matters, your project is supported by our unique global network of law firms.

Our clients include international corporations as well as private equity funds and other investors acquiring or establishing businesses in Finland or carrying out corporate transactions that directly or indirectly affect the ownership of a Finnish business. Through our international partner network, we also advise Finnish clients in their corporate and ownership arrangements that may require an analysis of FDI issues in jurisdictions outside Finland.

Our services include

  • Strategic advice related to the FDI approval process
  • Analysing the need for application and/or notification under Finnish FDI regulation in relation to agreements, investments and other transactions
  • Coordinating the work of foreign counsel with regard to the FDI analysis in other jurisdictions
  • Drafting and submitting the applications and notifications
  • Advice during the proceedings and project management of the FDI notification process as a whole

Latest references

We advised General Catalyst as lead investor on ICEYE’s EUR 150 million series E funding round, valuing the company at EUR 2.4 billion. ICEYE is the world leader in synthetic aperture radar (SAR) satellite systems and operates the largest SAR constellation globally. Its technology delivers objective, near real-time Earth observation in any weather or light conditions, enabling governments and institutions to manage risks and respond faster. General Catalyst is a global investment and transformation company, partnering with leading entrepreneurs to build toward global resiliency and applied AI. Its portfolio includes companies such as Airbnb, Snap, Stripe, Mistral AI, Hubspot, Anduril, Helsing and Legora. We advised General Catalyst on this transaction in collaboration with the US law firm Goodwin. 
Case published 8.12.2025
We advised Springvest Oyj in organising a EUR 45 million Series A funding round for ReOrbit, a space technology company and a leading provider of software-first satellites. It’s the largest all-equity Series A round in Finland and one of the most significant deals overall in the European space and defence sector. The purpose of the funding round is to support ReOrbit’s growth. The round consisted of a private placement reserved for professional and institutional investors, which included, e.g. Icebreaker.vc, Expansion VC, 10xFounders, Inventure VC, Varma Mutual Pension Insurance Company, and Elo Mutual Pension Insurance Company, and an EUR 8 million public share offering, which was oversubscribed within 4.5 hours. Springvest is a Finland-based investment firm that connects unlisted growth companies with investors. ReOrbit builds sovereign satellites and connected systems for national security.
Case published 9.9.2025
Castrén & Snellman advised the lead investors Ten Eleven Ventures and Tesi in the EUR 275 million Series B financing round of IQM Quantum Computers, the global leader in building quantum computers. The round is largest Series B round ever in Finland and the second largest in the Nordics. In addition to the lead investors represented by C&S, the round was participated by several new and existing investors, including pension funds Elo Mutual Pension Insurance and Varma Mutual Pension Insurance, strategic investors Companies of Schwarz Group and Winbond Electronics Corporation, and sovereign wealth funds EIC and Bayern Kapital. Ten Eleven Ventures is the original cybersecurity-focused, global, and stage-agnostic investment firm. The firm identifies, invests in, and helps grow top cybersecurity companies addressing critical digital security needs, leveraging its team, network, and experience to build successful businesses. Since its founding, Ten Eleven Ventures has raised over USD 1 billion and made over 60 cybersecurity investments across various stages worldwide. Tesi (Suomen Teollisuussijoitus Oy / Finnish Industry Investment Ltd) is a state-owned investment company with an industrial policy mission focused on driving economic growth, renewal, and investments. Tesi invests on market terms both in venture capital and private equity funds, and directly in startups, scale-ups, and large industrial projects. IQM Quantum Computers, founded as a deep tech spin-off from Aalto University in 2019, specialises in developing quantum computers utilizing superconducting circuits. The company designs and produces quantum processors at its facility in Espoo, providing computing solutions and optimizations tailored to both research and industrial applications. In addition to its Finnish operations, IQM has expanded its presence to Germany, France, Italy, Japan, Poland, Spain, Singapore, South Korea, and the United States.
Case published 4.9.2025
We acted as Finnish legal advisor to HANZA AB in connection with its acquisition of the contract manufacturing division of Milectria, a group of companies specialising in electrical systems for the defence industry.  The transaction comprises 100% of the shares in Milectria Oy (Finland), Milectria OÜ (Estonia), and the real estate company Kiinteistö Oy Kanungin Karhu. The transaction is expected to close in September 2025, subject to customary closing conditions, including regulatory approvals.  Founded in 2008, HANZA is a Swedish mechanical engineering and electronics contract manufacturing company listed on the Nasdaq Stockholm main list. The company operating in seven countries currently has annual sales of approximately SEK 6 billion and approximately 3,100 employees. Milectria is a Finnish contract manufacturer of electrical systems for the defence industry.
Case published 21.7.2025