New German Merger Control Threshold Eliminates Need for Preclosing Approval for Deals with Minimal Nexus to Germany

Effective March 25, 2009, amendments to the German competition law will significantly reduce the number of transactions subject to premerger notification and clearance in Germany.

Up until now, the German turnover thresholds were met if (i) the combined worldwide sales of all parties to the transaction (i.e., the buying group(s) and target) exceeded €500 million (approx. $745 million) within the prior calendar year, and (ii) any of the parties achieved German sales in excess of €25 million (approx. $37.2 million) within that time period. This resulted in many transactions being notifiable and subject to a one-month waiting period merely because one party satisfied both thresholds.

For the full story, please view the PDF.