How to Navigate the New M&A Landscape in the US for German Companies
The difficult economic situation in Germany has driven many companies to seek opportunities abroad, with the United States emerging as a particularly attractive market for mergers and acquisitions (M&A). For German firms, expanding into this market is not just a strategic choice but often a vital step to secure long-term stability and competitiveness also in a new era of global politics and regulation.
Notable examples of this trend are Siemens’ acquisitions of Altair for $10.6 billion in October 2024 and Dotmatics for $5.1 billion in April 2025, a move that underscores the strategic importance of the US market for German companies, in particular with regard to access digital innovation capabilities and AI.
Other recent cases include Merck KGaA’s announcement to acquire US biopharma company SpringWorks, T‑Mobile’s plan to acquire UScellular’s wireless operations, and Heidelberg Materials’ acquisition of Giant Cement Holding Inc., a US cement manufacturer, to strengthen Heidelberg’s footprint in the Southeastern US and New England markets.
These high-profile deals highlight a broader trend of German companies leveraging US acquisitions to drive innovation, access new customer bases, and secure long-term growth amid economic challenges at home. As this trend continues, the US is likely to remain a key destination for German firms seeking strategic expansion and transformation.
However, the US M&A landscape comes with unique challenges – particularly for new entrants that have yet to establish a strong US presence or brand awareness. German companies should be prepared to navigate regulatory scrutiny, cultural differences, and the need to engage with a diverse array of stakeholders, all of which require careful navigation. The rapidly changing political and economic environments in the US are influencing valuations, strategies and supply chains, with tariffs and other economic policies creating uncertainty. Missteps can lead to delays, reputational risks, or even deal failures.
A well-executed communications strategy is the backbone of any M&A announcement. Companies have one opportunity to launch a transaction, and effective communication plays a crucial role in determining its success and how it is received by investors, regulators, employees, and the broader market. For German companies seeking to transact in the US, this involves a comprehensive plan and well-crafted narrative that addresses both strategic goals and cultural sensitivities. At launch, companies should have consistent messages that are deployed thoughtfully to stakeholders – targeting key audiences and addressing them with tailored messages across multiple channels.
Strong Public and Government Affairs is More Important than Ever
The political landscape for M&A in the United States has undergone significant changes in recent years, and has continued to rapidly evolve in the new Trump administration. For German companies considering M&A activity in the US, navigating this environment requires a deep understanding of the evolving regulatory and political dynamics.
One of the most important factor for cross-border M&A has been the heightened scrutiny by the Committee on Foreign Investment in the United States (CFIUS). The Trump administration’s focus on “America First” policies introduced a more protectionist approach, particularly in sectors deemed critical to national security. This broadened the scope of reviews to include technology, infrastructure, and data-related businesses, placing many potential German acquirers under a microscope.
German companies must also grapple with broader geopolitical concerns, such as trade tensions between the US and the European Union. These tensions have sometimes translated into closer scrutiny of foreign investments from allied countries, making it essential to present acquisitions as mutually beneficial – to avoid political decisions against German companies.
In this rapidly evolving environment, companies need to be prepared to navigate potential threats from tariffs and shareholder activism to negative media headlines, regulatory and legislative activity, and targeted litigation practices. Often these threats do not exist in silos but are complex and interwoven – influencing industry consolidation, shaping companies’ strategic decisions and ultimately impacting the transaction landscape.
German companies seeking to transact in the US need to have a detailed plan to engage with key stakeholders, from elected officials and regulatory agencies to community organizations and labor unions – including scenario planning with appropriate escalation protocols in the event of a leak or negative public attention. For example, given continued antitrust scrutiny, driven in part by populist political dynamics in the US, German companies should have a robust, proactive outreach plan ready to deploy ahead of M&A, particularly large-scale, industry-transforming transactions.
Five Key Principles for Cross-Border M&A into the US
Here are five key principles that German companies and other ex-US acquirers should follow to navigate the current cross-border M&A environment effectively:
Prime the market
Deals don’t suddenly succeed at the time of announcement — they succeed in the months leading up to it. Companies should start cultivating investor and media understanding of their US strategy long before any deal hits the wires.
Use earnings calls, media engagement, investor collateral (presentations, fact sheets, etc.) and strategic whitepapers to lay the groundwork. Make sure stakeholders understand not just what you do, but why you’re the right owner for a US asset. Explain the “why now” behind your US strategy. Position yourself as a long-term partner for American growth, not just a buyer seeking yield.
Pressure test your synergies
In an era of tariff risk, deglobalization, and rising economic nationalism, synergy assumptions are under more scrutiny than ever. The market — and regulators — will challenge any overly optimistic projections, especially those with unclear rationale.
Model multiple scenarios, including ones with supply chain realignments or increased regulatory costs. Show how the deal creates enduring value even in more constrained, politically sensitive operating environments.
Keep consideration top of mind
The structure of your offer matters — and it sends a signal. Cash suggests conviction and certainty. Stock — especially foreign stock — can introduce valuation volatility, FX risk, and shareholder skepticism in the US.
Further, in today’s volatile market environment, stock consideration may contribute to ever shifting premiums. It is not uncommon to see daily drastic stock price swings in the markets right now, which can leave acquirers scrambling to try to justify a premium that was once in-line with precedent but is now below what the target’s shareholders would expect. In these instances, acquirers need to consider potential interloper or activism risk and stay incredibly close to target IR on shareholder sentiment.
If using stock, stay close to the vote
When stock is involved, investor support becomes a campaign — not a check-the-box exercise. With growing retail and passive investor influence in the US, acquirers must understand what a vote looks like. Do you need majority of total shares outstanding? Majority of quorum? How do you reach retail shareholders? How does the investor base tend to vote? What is the influence of proxy advisory firms like ISS and Glass Lewis?
These questions can be answered by starting and prepping for your campaign early. Educate shareholders on both the long-term upside and short-term benefits. If there’s potential for interloper or activist interest, get ahead of it with scenario planning and stakeholder mapping.
Shape the Regulatory Narrative
In recent years, regulatory clearance is no longer a backstage process — it’s a front-page story. In 2023, CIFUS investigated almost 55% of the 233 total notices of covered transactions.[1]
Deals are now judged not only on legal compliance, but on alignment with US interests: jobs, national security, industrial strategy, and economic self-sufficiency.
Position your acquisition as strengthening US capabilities — whether through investment, job creation, or tech transfer. Enlist credible validators: economists, industry leaders, former regulators.
And don’t ignore the optics. Be prepared for public affairs campaigns that highlight the deal’s local benefits — especially in politically sensitive regions or sectors.
In today’s environment, the best deals don’t just make financial sense — they make political and strategic sense, too. German companies undertaking M&A in the US must think like communicators, not just operators or financiers. This is not about spin. It’s about substance — and about framing your transaction in a way that builds alignment across Wall Street, Main Street, and Washington. Do that well, and you won’t just get the deal done — you’ll get it done with momentum and mandate.
References
[1] CFIUS – Annual Report to Congress – CY 2023 https://home.treasury.gov/system/files/206/2023CFIUSAnnualReport.pdf
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