Recent Developments on Review of Foreign Investment into Germany: Is the German Government Tightening the Rules?

November 28, 2016
  • For the first time ever the German Federal Ministry for Economic Affairs and Energy has withdrawn an already granted investment approval.
  • Chinese investments in German key industries increased rapidly and have raised to the forefront of political attention. It is a governmental concern that know-how of national security interest were wandering into unwanted hands.
  • Certain initiatives aim to tighten the current German and EU foreign investment review regulations in order to prevent a "sell-out" of German and European high-tech companies to foreign investors.
  • Foreign investors must be prepared for a stricter foreign investment review on any of their attempted investments into Germany. We may assume that investments will take longer to achieve final certainty and full closing and foreign investors will have to address any potential concern early on.

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