Concurrently, arbitration was underway between the seller and the Austrian company over the transaction’s alleged cancellation. The BMWE prematurely closed its review without a formal decision on the basis that the transaction had been aborted, prompting the court to rule that the BMWE’s closure lacked legal basis, and that the transaction was deemed cleared after the statutory review period lapsed without an in- depth investigation. In the second case, the court reversed the BMWE’s prohibition of Heyer Medical AG’s acquisition by China’s Aeonmed Group. The court found that the BMWE failed to respect the parties’ right to be heard and did not initiate its review within the required two-month period after learning of the transaction through an online article. The timing of the prohibition decision post-Aeonmed’s last hearing was also deemed excessively long. These rulings highlight the imperative for the BMWE to strictly adhere to procedural rules under German administrative law and the FDI regime. In July 2024, the BMWE blocked a Chinese investor’s proposed acquisition of MAN’s gas turbine business, presumably over concerns about potential military applications of its technology, even though the business’ survival without the investment was uncertain and multiple experts had assessed the risk of military use as extremely remote. Following the decision, the German Minister of Economy emphasized that “technologies that are relevant to public order and security must be protected against information leakage.”
In 2025, the publicly listed Italian gas network operator Snam abandoned its plans to acquire a 24.99% stake in German competitor Open Grid Europe after the BMWE raised concerns about the indirect minority shareholding held by Chinese state-owned network operator State Grid in CDP Reti, a holding company for the Italian state- owned investment bank and Snam’s controlling shareholder. The case is notable for illustrating the BMWE’s broad look-through approach, pursuant to which even indirect, non-controlling foreign shareholdings far up the ownership chain can trigger substantive concerns. In November 2025, the BMWE cleared the proposed acquisition of leading German polymer materials manufacturer Covestro by XRG (formerly ADNOC International), a subsidiary of the Abu Dhabi National Oil Company. The deal reflects the BMWE’s continuing scrutiny of investments by Middle Eastern (state-owned) investors, while confirming that such scrutiny does not invariably lead to prohibition. On January 29, 2026, the German Federal Ministry of Defense (BMVG) published guidance on its advisory role in the interministerial FDI screening process, identifying key assessment criteria – including the target’s supply relationships with the German Armed Forces, the investor’s security profile, and the location of decision-making bodies and governance structures – and flagging know-how protection risks that extend beyond the formal perimeter of investment control. The guidance could be reinforced by the anticipated standalone Investment Screening Act and signals a broad conception of economic security that goes beyond traditional FDI triggers.
Outlook for 2026 While Germany remains a foreign investor-friendly jurisdiction, the BMWE has intervened in a significant number of transactions since the first tightening of the regime in 2017 and the overall volume of cases under review continues to reach new highs. Against the background of increasing political tensions and military conflicts around the globe, this may be perceived as a trend not only to actively protect German economic interests in what is perceived to be an increasingly hostile global economic climate, but also to achieve a more “politicized” investment control.
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FDI and National Security Review
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