Business Breakfast: Investment Clearance Procedure & Pitfalls in the Course of Corporate Acquisitions by Foreign Investors

Cases have increasingly become public in which the Federal Ministry for Economic Affairs and Energy (BMWi) is reviewing the possible prohibition of a takeover of German companies by foreign, often Chinese, investors. How is this compatible with the principle of free foreign trade? The answer is provided by the Foreign Trade and Payments Act (Außenwirtschaftsgesetz, AWG) and the Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung, AWV), which were amended in 2013. According to these, the BMWi may examine company takeovers and prohibit them under certain circumstances. Our event provided information on the relevant regulations of the AWG and the AWV and presented the effects on corporate transactions with foreign participation.

AGENDA:

• The concept of “acquisition” as a prerequisite of investment review procedures under the AWG.
• Distinction between cross-sectoral and sector-specific investment examination procedures and presentation of the two procedures
• US CFIUS procedure and its implications
• Practical tips for corporate transactions