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Jul 11, 2017

Expands the scope of foreign investment screening

On 11 July 2017, the Government adopted a directive expanding the scope of foreign investment screening of non-EU companies seeking to acquire more than 25% of domestic firms. Current legislation is largely restricted to the monitoring of defence industry enterprises or companies involved in IT security and the processing of state-classified documents. The new rule expands the monitoring to companies that produce software for power plants, energy and water supply networks, electronic payments, hospitals and transport systems, as well as companies engaged in advanced defence technologies and surveillance equipment.The directive also gives the government more time to investigate takeovers, expanding the timeframe for such probes from two to four months. The review also considers “indirect acquisitions”, i.e.where foreign investors establish vehicles in the EU to take over German targets.

Type: Entry and establishment (Approval and admission)

Industry: Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c.), Services (Computer programming, consultancy and related activities)