The German Government introduces a draft bill on foreign direct investment

Foreign investment control has become a key factor in M&A deals and 2020 was a particularly eventful year. A large number of countries have recently introduced foreign investment control regimes (or tightened their existing rules) and made use of them with, for example, prohibitions witnessed in France and Germany. Hearing about renewed German plans for stricter foreign investment control laws, some readers may wonder: “Again? Didn't Germany only last year enact two reforms to foreign trade law that tighten the substantive standard of review for M&A transactions by foreign, especially non-EU, acquirers? And wasn't it only in December that a Chinese acquisition of a German company was prohibited ?” This is true, but only two of the three planned reforms were implemented in 2020.

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Falk Schöning, Stefan Kirwitzke, The German Government introduces a draft bill on foreign direct investment , 22 January 2021, e-Competitions January 2021, Art. N° 100054

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