Thursday May 21 2020
News Source: Global Disclosures
Focus: Foreign Investment
On 20th May 2020, the German government announced that the Cabinet has extended the list of companies for which the acquisition of a stake by a purchaser from outside the European Union can be examined. In future the list will include businesses in the health branch – with a view to the possible endangering of public order or safety.
Against the backdrop of the COVID-19 pandemic, the amendment to the Foreign Trade and Payments Regulation (AWV) is intended to help maintain a properly functioning health system in Germany at all times.
Any acquisition of a stake of ten per cent or more in security-relevant businesses in the health branch must be reported and can be examined in future
Extended list of security-relevant businesses
The new list includes business that develop or manufacture goods that are indispensable for the maintenance of a properly functioning health system in Germany, such as personal protective equipment (PPE), drugs and vaccines.
Other factors relating to the investor per se have also been incorporated in the Foreign Trade and Payments Regulation (AWV). The examination can, for instance, take into account whether the body acquiring a stake is directly or indirectly controlled by a foreign government, including any state agency or armed forces.
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