M&A activity in Germany spikes in 2017
New FDI figures show that German companies are hot property
May 18, 2017
Berlin (GTAI) - Germany’s federal states registered 1,707 merger and acquisition (M&A) transactions in 2016, according to the collated data from the 16 states. The figure represents a massive increase on 2016, when only 413 M&A transactions were registered, reflecting an increasing desire for companies not just to have a presence in Germany, but also to tap into the local workforce’s existing knowledge and resources and work with it.
Altogether there were more than 3,600 foreign investments in Germany in 2016, up from jut over 2,300 in 2015 – the large increase is almost solely down to the increase in M&A activity.
China continues to be the source of the most greenfield investments (281 in 2016, up from 260 in 2015), while the EU is still the source of most of the new facilities invested in. “The increase in M&A activity is very interesting, in that it shows how much Germany’s companies’ knowledge and ability is sought after, as well as a post in business location Germany,” said Dr. Benno Bunse, CEO of Germany’s federal economic development agency Germany Trade & Invest (GTAI).
“Our SME foundation continues to create numerous companies that are leaders in their very specific fields, in turn creating great opportunities for global companies requiring that very specific know-how and skillset. These German SMEs are superb value-adding opportunities for foreign companies looking to acquire relevant and specific skills for their international development, while an acquisition within the EU’s strongest economy speaks for itself as a wise investment decision.”