Twitter Logo Youtube Circle Icon LinkedIn Icon

The Legal 500 Hall of Fame Icon The Legal 500 Hall of Fame highlights individuals who have received constant praise by their clients for continued excellence. The Hall of Fame highlights, to clients, the law firm partners who are at the pinnacle of the profession. In Europe, Middle East and Africa, the criteria for entry is to have been recognised by The Legal 500 as one of the elite leading lawyers for seven consecutive years. These partners are highlighted below and throughout the editorial.
Click here for more details

Germany > Legal Developments > Law firm and leading lawyer rankings

Editorial

M&A – Tighter rules for foreign investors entering German market

January 2019 - Corporate & Commercial. Legal Developments by GRP Rainer LLP.

More articles by this firm.

While corporate mergers and acquisitions boomed in 2018, investors from outside of the EU will now have a more difficult time joining or acquiring German businesses.

At the end of 2018, the German federal government passed an amendment to the Außenwirtschaftsverordnung (AWV), Germany’s Foreign Trade and Payments Ordinance. We at the commercial law firm GRP Rainer Rechtsanwälte note that its core function was to tighten the rules for foreign investors from outside of the EU entering the German market via German companies.

The amendment to the AWV concerns sensitive sectors of the economy such as defence and critical infrastructure, including e.g. telecommunications, IT security, the provision of drinking water, payment transactions, power, health services, transport and software. The federal government now has a right of veto over these sectors if an investor wishes to acquire a ten per cent stake in a German business. The threshold was previously set at 25 per cent.

It should be noted, however, that the lowering of the threshold for assessment only applies to sensitive sectors, as there is a desire for Germany to remain an attractive location to foreign investors for M&A transactions. Critics are nonetheless worried that foreign investors will be put off by these stricter rules.

Investors and entrepreneurs can turn to lawyers who are experienced in the field of M&A.

Click here for more information.

Interview with...

Law firm partners and practice heads explain how their firms are adapting to clients' changing needs

International Law Firm Networks

International Law Firm Networks