Further Tightening of Germany’s Foreign Investment Control Regime

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On 8 April 2020, the German Federal Government adopted an amendment act of the German Foreign Trade and Payments Act (AWG) and thus opened the way for the parliamentary procedure. The legislative procedure is expected to be completed and the new act (Act) shall enter into effect in autumn 2020. The purpose of the draft Act is to adapt the German legal framework to the requirements of the European Foreign Direct Investment (FDI) Screening Regulation (Regulation (EU) 2019/452 of 19 March 2019) and to further tighten the investigation and control regime for foreign investments in German target companies.