Here Come the Germans

It’s comes as no surprise, especially to those at BridgehouseLaw, that German-American roots are strong and rich. With nearly 48 million people across the US claiming German ancestry, German-Americans make up the country’s largest diaspora. However, when it comes to business ownership, German-Americans account for only 8% of the stock of foreign direct investment, ranking them 7th (behind France, Britain, and Japan).

This year, however, firms such as Siemens, SAP, Bayer, and Infineon have been busy buying up American firms and thus far have spent close to $65 billion. (Infineon is buying International Rectifier, ZF Friedrichshafen is buying Michigan-based rival TRW, and Siemens is buying Dresser-Rand.) Of all the American firms receiving bids this year, roughly one-fifth have come from German buyers. The worldwide cross-border takeovers led by German firms have largely targeted American firms, accounting for 60% of all German takeovers.  

Economists attribute this trend to the high labor costs in Germany and the dim prospects for the euro zone. Additionally, countries such as China are becoming less hospitable to foreign firms forcing them elsewhere. As a result, German firms have been drawn to the rapidly growing American economy resulting from the fracking boom and the relatively cheap labor due to stagnant wages.
Best regards
und viele Grüße aus Charlotte
Reinhard von Hennigs