Corporate Financing Analysis - Protectionism Enters German M&A Arena - 28 AUG 2017


Given its economic strength and favourable position in Europe, both strategically and politically, Germany has become an increasingly popular destination for overseas dealmakers over recent years. But for some, that popularity has become too much. With European economic growth having stabilised once more, and with the initial volatility following the Brexit vote in the United Kingdom having calmed - a set of circumstances allowing takeover activity targeting the continent's largest economy to accelerate to a record level in the y-t-d period - the German government has stepped in to address fears of key knowledge and core assets being lost overseas to the highest bidder.

2017 A Record Year

According to data from Zephyr (a Bureau van Dijk product), there have been as many as 1,722 announced M&A deals worth a combined USD92,380mn targeting German companies in the y-t-d period. This represents a near two-fold increase from the USD49,285mn worth of deals across 1,531 deals which had been announced by the same stage last year (although it is worth noting that 2016 was a particular slow year for global dealmaking more broadly), and well ahead of the record USD68,051mn in inbound German M&A announced during the equivalent y-t-d period in 2015 across 994 transactions. In fact, such is the rapid pace of deals to be launched so far in 2017 that this year's combined value of deals had already surpassed 2015's full-year record high of USD91,461mn in announced transactions, subsequently standing in good stead to add to that haul for the year end ( see ' German M&A Enjoying Surge Of Interest ' , March 22).

Proving To Be Popular
Y-T-D Announced German Inbound M&A By Deal Value, USDmn
Source: Zephyr, a Bureau van Dijk product

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