Amends its FDI screening regime
17 Jul 2020
On 17 July 2020, the first amendment to the Foreign Trade and Payments Act entered into force. It aims at implementing the European foreign investment screening regime in Germany. Furthermore, it expands the scope of the foreign acquisition review to a "probable impairment” of public order or security, whereas previously only an actual risk could trigger governmental intervention. The new test refers not only to the public order and security of Germany, but also to that of any other EU Member State as well as to projects or programs of EU interest.
Additionally, all foreign acquisitions with mandatory fillings are suspended and deemed void until governmental approval is issued. Also, certain steps towards the conclusion of a transaction are prohibited and the infringement may be subject to fine or imprisonment. Those include an exercise of voting rights, entitlement to dividends, or sharing of specific information on the target company. The amendment introduces a new provision stipulating the time limits for the different stages of the screening process, in a comprehensive, differentiated and transparent manner.
Finally, the Foreign Trade and Payments Ordinance was adjusted to changes provided for in the the amendment of the Foreign Trade and Payments Act. Those modifications were adopted on 7 October 2020 and came into force on 29 October 2020.
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Entry and establishment (Approval and admission)
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