Increased Scrutiny: Germany Again Tightens Its Foreign Direct Investment Regime

30 June 2021
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Key takeaways:
  • Germany has again tightened and expanded its foreign direct investment (“FDI”) regime. It has also added 16 additional industries to the already existing list of sectors that come within the purview of FDI screening.
  • Acquisitions by non-EU/EFTA investors above certain thresholds are subject to a mandatory FDI screening and may not be implemented before clearance. Follow-up investments may need to be refiled.
  • For M&A transactions, FDI screening continues to become an important element in M&A planning when the target has European operations. Non-EU/EFTA investors need to consider enhanced FDI notification obligations, in Germany and EU-wide, at an early stage of their investment.