M&A Market: German Companies Are Highly Sought After by Foreign Buyers

Berlin, November 5, 2026

German companies are more sought after by international buyers than they have been in a long time: Between Q3 2025 and Q2 2026, the volume of cross-border acquisitions of German companies by foreign buyers rose by 134 percent to $128.7 billion. At the same time, the number of these transactions rose from 897 to 926 deals. A total of 18 of these transactions, with a volume exceeding one billion U.S. dollars, were announced. This is shown in the latest M&A Outlook 2027, for which KPMG, in collaboration with Oxford Economics, surveyed over 200 top decision-makers in the M&A sector. The results underscore Germany’s high appeal to international buyers and its position as the most important destination for international M&A capital within the EU in the first half of 2026.

Technology and industrial companies, as well as infrastructure assets, were particularly in demand. Among respondents reporting increased M&A activity, technology has gained significantly in importance on both the buyer and seller sides. 

During the period under review, the German M&A market proved to be significantly more resilient than the broader economic environment, even excluding acquisitions by foreign buyers. Domestically, 1,038 transactions were announced — nearly as many as in the same period of the previous year (1,054). At the same time, deal volume rose by 67 percent to $31.7 billion. German companies also resumed investing more heavily abroad. The number of foreign acquisitions rose from 593 to 622 transactions, and the volume increased by 15 percent to $42.9 billion. Overall, the volume of the German M&A market across all segments increased by approximately 83 percent to $203 billion, spread across 2,586 transactions.

The increase in market volume was concentrated primarily at the high end of the market. Five megadeals, each with a volume of at least 10 billion U.S. dollars, accounted for 41 percent of the total transaction volume. In the same period the previous year, mega-deals accounted for only 14 percent of the market volume. At the same time, the volume of transactions between one and ten billion U.S. dollars rose from 61 to 87 billion U.S. dollars, while the number of smaller transactions remained largely stable. Companies acted as buyers more frequently during the period under review. Financial investors, on the other hand, focused on fewer but larger acquisitions. Nevertheless, they continued to play a defining role, particularly in large transactions: They were involved as buyers or sellers in 17 of the 30 transactions with a volume of more than one billion U.S. dollars.

The model projections from this comprehensive study anticipate an increase in the total number of German M&A transactions from 2,625 deals in 2026 to 3,109 deals in 2028. This represents an 18 percent increase and marks the peak of the market development modeled through 2030. Growth is expected across all market segments: Domestic deals are projected to rise by 22 percent to approximately 1,300 transactions by 2028, while acquisitions of German companies by foreign buyers are expected to increase by 13 percent to 1,039 deals. At the same time, the authors anticipate a 20 percent increase in foreign acquisitions of German companies, reaching 770 transactions.

Among the key drivers of the expected upswing is the technological transformation of many business models. Artificial intelligence is increasingly becoming a standalone catalyst for transactions. 61 percent of respondents expect AI to trigger a new wave of acquisitions and divestitures within the next three years. 57 percent anticipate that companies will be more likely to acquire the necessary AI capabilities by 2030 rather than build them in-house. 

Trade policy uncertainties currently rank among the most significant geopolitical risks for M&A activity. 65 percent of respondents cite them as one of the three most significant geopolitical factors. This marks a significant shift in the geopolitical risk landscape compared to the previous year. When asked about specific hurdles to completing transactions, buyers primarily cite market uncertainty (67 percent) and high valuation expectations on the part of sellers (58 percent). These figures refer to respondents who did not carry out potential buy-side transactions in 2026.