What prompted Germany to strengthen its foreign takeover laws?

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Germany Strengthened Foreign Takeover Laws Due to Fears of Hostile Takeovers Amidst the Coronavirus Crisis

Fears that opportunistic corporate raiders might exploit the economic vulnerabilities created by the coronavirus crisis to acquire weakened European companies prompted Germany to strengthen its foreign takeover laws. The alleged bid by Donald Trump for a German biotech firm involved in vaccine development served as a significant catalyst, highlighting concerns over the potential loss of critical technologies and know-how. This situation spurred a broader European Union response to enhance defences against hostile takeovers.
Alleged Bid for German Biotech Firm Raised Alarm

A significant point of concern arose from reports of an alleged US$1 billion offer by Donald Trump for exclusive rights to a coronavirus vaccine being developed by German firm CureVac. Although CureVac denied the specifics of the report, the public outcry underscored the sensitivity surrounding foreign acquisition attempts of companies involved in critical research, particularly during a global health crisis. This incident prompted Germany's Economy Minister Peter Altmaier to publicly state that "Germany is not for sale."
EU-Wide Concern Over Vulnerable Companies

The incident resonated across the European Union, with European Commission chief Ursula von der Leyen urging member states to utilise all available options to safeguard critical European companies from unwanted foreign takeovers. The pandemic-induced economic downturn had significantly impacted many firms, leading to plummeting share prices and making them attractive targets for bargain hunters. This was particularly true for niche companies in health technology and medical research, which were drawing increased investor interest.
New German Legislation Eases Blocking of Takeovers

In response to these mounting fears, Germany moved to expedite its protective measures. The German government approved a draft law designed to make it easier to block takeovers of strategically important companies by non-EU entities. This legislation also grants the government the authority to temporarily halt takeover processes while their potential impact is assessed, thereby preventing immediate access to a target firm's intellectual property by potential new owners. This move is expected to lengthen and complicate certain acquisition attempts.

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What prompted Germany to strengthen its foreign takeover laws?

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