Foreign Investment in German Companies Surges to $129 Billion in 2026

Foreign investors have significantly ramped up their acquisitions of German companies, with a remarkable 134% increase in deal volume reported between Q3 2025 and Q2 2026. According to a KPMG analysis, cross-border takeover transactions surged to nearly $129 billion during this period, rising from 897 deals to 926, including 18 deals worth over $1 billion. US investors are particularly active, participating in ten of these billion-dollar transactions.

Michael Buhl, a KPMG expert, attributes Germany's growing attractiveness to its advanced technological expertise, industrial excellence, and high-quality data assets. Additionally, the relatively favorable valuations of German firms and expected government investments in infrastructure and defense have boosted these acquisition activities. Buhl also notes that current US investor interest parallels the significant acquisition wave in Germany seen in 2007 during cable network privatizations.

This sharp increase highlights the strategic value foreign buyers place on German companies amid a competitive global landscape. The sustained interest underscores Germany's standing as a key destination for international investment, driven by its robust industrial base and innovation capabilities.