Germany and Austria Introduce Transaction Value Merger Notification Thresholds

Germany and Austria adopted transaction value merger notification thresholds.

Based on these new thresholds, transactions involving a transaction valuation exceeding € 400 million (Germany) or € 200 million (Austria) will be notifiable under Germany’s and Austria’s merger control rules, provided that certain revenue thresholds are met and the target has “significant” activities in Germany or Austria.  The new thresholds are specifically intended to capture transactions in the digital economy involving targets with no, or only insignificant, revenues at the time of the acquisition.  The adoption of these new thresholds will further increase the likelihood that transactions are notifiable in Germany or Austria.  Both Germany and Austria already today have relatively low revenue-based notification thresholds, which remain in force unchanged as an alternative set of thresholds. The new German threshold entered into force on June 9, 2017.  The new Austrian threshold will enter into force on November 1, 2017.