The German government’s decision to tighten regulation around foreign investment control in Germany means that acquisitions by foreign companies are facing much greater scrutiny. The government’s amendments to the Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung) means that the Federal Ministry for Economic Affairs and Energy will be able to inspect, and potentially prohibit, an acquisition of a shareholding of at least 25 percent in a German company by a non-EU investor if they deem the acquisition as a danger to Germany’s public order or security. Make sure to read our client alert for a summary of the updated policy and a list of the key points to consider.
