The latest amendment of the German FDI rules brings mandatory reviews for 16 additional "critical activities" – but also some welcomed clarifications. The amendment entered into force.
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“Critical technologies” finally found their way into German FDI rules but start-ups and financial investors may be less burdened than previously assumed.
The long-awaited 17th amendment of the Foreign Trade and Payments Ordinance (
Außenwirtschaftsverordnung -
AWV) has now come. It will enter into force on May 1, 2021.
After three amendments of the German FDI control regime in 2020, Germany now tightens its FDI control regime once again. The new changes further implement the Regulation (EU) 2019/452 of March 19, 2019 (EU FDI Screening Regulation), specially targeting “critical technologies” such as artificial intelligence, robotics, semiconductors, cybersecurity, aerospace, defense and many others. Mandatory FDI notification is now required for foreign investment in these tech-related targets. The new rules will definitely have a strong impact on future foreign investments and M&A activity in Germany. The goo
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On January 22, 2021, the German Federal Ministry for Economic Affairs and Energy has published the anticipated draft revision of the German Foreign Trade and Payments Ordinance to align the scope of review more closely with the EU Screening Regulation. The Ministry launched a consultation process the same day and is giving the associations and companies potentially affected the opportunity to discuss their views and propose further revisions.
Following a number of revisions of the German foreign direct investment rules throughout 2020 (including a COVID-19-related broadening of the scope of review, the introduction of a standstill obligation outside of defense deals, and criminal sanctions for non-compliance), the German Federal Ministry for Economic Affairs and Energy (
Germany strengthens foreign investment controls
Out-Law News | 02 Feb 2021 | 3:15 pm | 2 min. read
The German government intends to tighten the rules on foreign direct investment control by extending the list of businesses whose acquisition must be notified to the German Ministry of Economics. The acquisition of control rights will also trigger an investment review.
The German Ministry of Economics and Energy (Bundesministerium für Wirtschaft und Energie/BMWi) has published a draft bill to change the Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung/AWV). New business areas will be added to the list of sectors in which acquisitions by foreign investors have to undergo a security screening. The list will be extended from 11 to 27 security-relevant areas. Foreign direct investments (FDIs) in these areas will then have to be notified to the BMWi and may not be conducted until the ministry has finished the review.