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Certain acquisitions of German companies by foreign investors may require governmental approval under German foreign investment restriction rules. In 2016, we saw several transactions that did not succeed because this approval had not been granted or because an in-depth review has materially extended the approval process. There are indications that the German government has started to apply a more rigorous approach to foreign investment review. This Legal Update summarizes recent developments in German M&A and their potential impacts on investments in 2017.

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