Legal Risk Of Reform And Opening Up State-owned Acquisitions Sight In Germany

Since the reform and opening up, Chinese companies have been undergoing a rapid development of overseas mergers and acquisitions(M&A). whose operational and legal risks are the important factors to decide the success. The integration and research on the legal risks and precautionary measures of the specific investment country have certain significance of practical guidance.The risk management and prevention of the overseas mergers and acquisitions in Germany being as the main object of study, this paper, closely links to the special features of China’s companies and German environment, adopted with two research methods-deductive analysis and historical analysis, is focused on the legal risks of German national security review, of German Federal Cartel Office as well as German labor protection act that Chinese companies face in the overseas M&A in Germany through arrangement and research and presents corresponding preventative measures toward these.On prevention of the risks in national security review, companies should start from their own realistic situation through detailed self-analysis, using the appropriate acquisition method to resolve risks of being backed by state-owned enterprise and government identities, industrial risks of mergers and acquisitions and using the external forces, through cooperation and strengthening the publicity to reduce political risks. Companies should also reduce the M&A failure risks through advance planning and formulating buffering terms of the contracts. On the Cartel risk prevention, companies should strengthen the awareness of the prohibition clauses. If companies encounter the Cartel review, it is required to have a complete audit with focuses to face the lawsuits; or to emphasize the win-win value and highlight German interests. On the risks in the labor protection laws, companies should think outside the box and coordinate the labor relations, establish a sound mechanism to reduce operating costs.