The Fort Worth Press - Cross-Border M&A Volume Doubles as US Investors Target German Firms

The volume of cross-border acquisitions involving German companies more than doubled between the third quarter of 2025 and the second quarter of 2026, rising 134 percent to nearly $129 billion, according to a study by KPMG. The number of transactions increased from 897 to 926 during this period.

US investors were the primary drivers of this activity, backing ten of the announced billion-dollar deals. Michael Buhl, an expert at KPMG, attributed the interest to the combination of technological competence and industrial excellence found in many German firms. He noted that relatively low valuations and expectations for state spending on infrastructure and defense also played significant roles.

Notable transactions included the sale of fan specialist EBM-Papst to US firm Madison Air, Carlyle’s majority takeover of BASF Coatings, Bain Capital’s deal with Everllence, and Carrier’s acquisition of Viessmann’s heat pump business. The European Commission also recently approved JD.com’s takeover of MediaMarkt/Saturn.

Buhl characterized the activity not as a sell-off but as an accelerator of structural change, pointing out that German companies are simultaneously increasing their own overseas investments. The volume of German outbound acquisitions grew 15 percent to $42.9 billion, with transaction counts rising from 593 to 622.

KPMG projects continued growth in the sector, forecasting that domestic deals will rise 22 percent to approximately 1,300 by 2028. Foreign acquisitions of German firms are expected to increase 13 percent to 1,039 deals. The firm cites the disruption caused by artificial intelligence as a key factor reshaping business models and driving these strategic partnerships.

M.Delgado--TFWP