Foreign takeovers of German firms more than double in value

Foreign investors are showing their strongest interest in German companies in years, with the value of cross-border takeovers surging 134% to nearly $129 billion in the four quarters to June 2026, according to an analysis by consultancy KPMG.

The number of deals rose from 897 to 926, including 18 announced transactions worth more than $1 billion each, the consultancy said, citing figures from financial data provider LSEG. US investors were behind 10 of those large deals.

German firms were "at the top of the shopping list" for many US investors, KPMG said. The last comparable wave of US interest came in 2007, during the privatization of Germany's cable networks.

KPMG expert Michael Buhl said Germany was drawing investors thanks to companies' technological expertise, industrial strengths and high-quality data, as artificial intelligence reshapes industries.

Relatively attractive valuations and plans for billions in government spending on infrastructure and defence were also boosting demand.

Recent deals include US group Madison Air's agreed $5.4-billion takeover of German ventilation specialist ebm-papst and Carlyle's majority acquisition of BASF's coatings business.

Buhl said foreign takeovers could accelerate structural change rather than amount to a sell-off.

German companies also stepped up acquisitions abroad, with deal numbers rising from 593 to 622 and their value climbing 15% to $42.9 billion.

KPMG expects domestic deals to increase 22% to around 1,300 by 2028 and foreign takeovers of German firms to rise 13% to 1,039, partly driven by AI.