The latest amendments build on last year’s reform, extensively expanding the sectors subject to a mandatory review.

Key Points:

..The list of sectors in which investment in a German business triggers a notification obligation now includes inter alia “critical technologies” such as artificial intelligence and 3D printing as well as the extraction or processing of certain critical resources, large agricultural producers, and businesses that deliver certain IT or communication services. If non-EU investors acquire 20% or more of the voting rights in companies active in these sectors, the investment triggers a notification obligation.

..The higher notification threshold compared to the existing rules (the threshold remains at 10% for critical infrastructure and the defense sector) is intended to relieve the burden on minority investments in startups and for certain financial investors. At the same time, the power of review is extended to certain acquisitions below the applicable thresholds.

..Existing filing requirements in the defense sector are expanded to include all defense goods that are either export-controlled or based on secret IP rights.