The Investment Test of the BMWi for the Acquisition of Domestic Companies by Foreign Investors



This article by Nikolaus von Jacobs and Germar Enders elaborates on certain restrictions which investors from abroad may have to face when intending to invest in German companies. Under the German Foreign Trade and Payments Act (Außenwirtschaftsgesetz) the Federal Ministry of Economics may review and under certain circumstances prohibit investments of foreign investors in German companies. The article provides for an overview of the different types of review procedures (i.e. the cross-sectoral examination and the sector specific examination) and explains which points the parties should keep in mind when structuring any transaction.