German companies are increasingly popular with foreign buyers as targets for takeovers, which has reached a level not seen for a long time.
An analysis conducted by the consulting company KPMG showed that during the period from the third quarter of 2025 to the second quarter of 2026, by precisely 134%, reaching about $129 billion.
At the same time, the number of such deals increased from 897 to 926 deals. During this period, 18 deals were announced, each of which exceeded a billion dollars in value, according to the study, which was based on data from the “LSEG” group, which specializes in financial data.
American investors in particular were the most active, as they alone were behind ten deals worth more than $1 billion. The study indicated that German companies occupy a “very high position on the purchase lists” of many American investors.
Why do German companies attract investors?
Michael Paul, an expert at KPMG, said: “The next wave of artificial intelligence will not be determined in the major technology centers around the world alone,” adding that Germany has also become the focus of attention of foreign investors, “because many German companies combine technological competence, industrial excellence, and high-quality data.”
The relatively attractive valuations of German companies, coupled with expectations of billions of dollars in government spending on infrastructure and defense, also contribute to this trend. German companies have not seen similar interest from American buyers since 2007, during the privatization of cable networks.
Americans are in the lead
American investors continue to conclude acquisition deals in Germany. For example, ABM-Pabst, a company specializing in the manufacture of propellers, based in Baden-Württemberg, moved to the American Madison Air group for about 4.8 billion euros.
The American investment company Carlyle also acquired a majority stake in the paint sector of the chemical giant BASF, based in Ludwigshafen. The American financial investment company Bain Capital also agreed to acquire a majority stake in Everlens Company in Augsburg, which specializes in manufacturing ship engines and power generation plants.
The German "Weissmann" group, located in the northern state of Hesse, sold its heat pump business to the American "Carrier" group.
Paul, an expert at KPMG, does not see that the increasing foreign interest represents a broad sale of German companies, but rather considers it a factor accelerating structural transformation, explaining that the German delivery services company, “Delivery Hero”, based in Berlin, can obtain, for example, through the acquisition of the transportation services company “Uber” the ability to access its platform.
Paul added that the sale of IBM-Pabst opens the way for it to access the American market and the data center market.
At the same time, the KPMG study showed that German companies are also increasing their investments abroad; The number of acquisitions carried out by German companies outside the country during the period under study increased from 593 to 622 deals, while their value increased by 15% to reach $42.9 billion.
KPMG expects a strong increase in mergers and acquisitions in Germany. The number of local deals is expected to increase by 22% to reach about 1,300 deals by 2028, while the number of acquisitions of German companies by foreign buyers is expected to increase by 13% to reach 1,039 deals.
The study indicated that the transformation caused by artificial intelligence, which is reshaping many business models, will be the main driver of this development.
