The Federal Ministry for Economic Affairs and Energy can assess whether there will be a likely effect on the public order or security of the Federal Republic of Germany, of another Member State of the European Union or in relation to projects or programmes of Union interest if a non-EU resident directly or indirectly acquires a domestic company or a stake in a domestic company. The foreign ownership thresholds that trigger the cross-sectoral review mechanism are as follows:
1. 10 percent of the voting rights in a company cited in Section 55a subsection 1 number 1 to 7 [for instance: company which operates critical infrastructure, or company which specially develops or modifies software that serves to operate critical infrastructure in specific sectors; please see the legal text for the full list], 
2. 20 percent of the voting rights in a company cited in Section 55a subsection 1 number 8 to 27 [for instance: company which develops or manufactures personal protective equipment, or company develops, manufactures or markets essential medicines; please see the legal text for the full list] or
3. 25 percent of the voting rights in another company.
The Ministry can prohibit the direct acquirer from making the acquisition, or issue instructions to the parties involved in the acquisition and the companies affiliated to them in order to uphold essential security interests.
On 3 June 2020, an amendment to the Foreign Trade and Payments Ordinance came into effect. The amendment changes procedural and substantive aspects of Germany’s investment screening procedure to safeguard essential security interests. The changes extend the application of a 10% trigger threshold for acquisitions by non EU-foreigners and an associated notification requirement to health-related sectors and adjust some procedural rules to overcome identified shortcomings in the operation of the mechanism.
On 17 July 2020, an amendment to the Foreign Trade and Payments Act came into effect. The law adapts the German review framework to the European Union Regulation establishing a framework for the screening of FDI into the EU, among others by taking other EU members’ interests and European programmes into consideration for the risk assessment. Furthermore, the probability threshold for the prognosis of risk is revised in accordance with the EU Screening Regulation. The amendment introduces a new provision stipulating the time limits for the different stages of the screening process, in a comprehensive, differentiated and transparent manner.
According to the website of the German Ministry of the Economy and the explanations provided in the draft of the 16th Amendment to the Foreign Trade and Payments Ordinance, a further amendment to the Foreign Trade and Payments Ordinance was under preparation in October 2020 but no draft had been published at the end of the reporting period on 15 October 2020. This further amendment is planned to expand the scope of sectors in which a lower (10%) trigger threshold and a notification requirement applies.
On 17 July 2020, the first amendment to the Foreign Trade and Payments Act entered into force. It aims at implementing the European foreign investment screening regime in Germany. Furthermore, it expands the scope of the foreign acquisition review to a "probable impairment” of public order or security, whereas previously only an actual risk could trigger governmental intervention. The new test refers not only to the public order and security of Germany, but also to that of any other EU Member State as well as to projects or programs of EU interest. Additionally, all foreign acquisitions with mandatory fillings are suspended and deemed void until governmental approval is issued. Also, certain steps towards the conclusion of a transaction are prohibited and the infringement may be subject to fine or imprisonment. Those include an exercise of voting rights, entitlement to dividends, or sharing of specific information on the target company. The amendment introduces a new provision stipulating the time limits for the different stages of the screening process, in a comprehensive, differentiated and transparent manner. Finally, the Foreign Trade and Payments Ordinance was adjusted to changes provided for in the the amendment of the Foreign Trade and Payments Act. Those modifications were adopted on 7 October 2020 and came into force on 29 October 2020.
On 20 May 2020, the German government amended the Foreign Trade and Payments Ordinance, focusing on critical public health services. It stipulates that foreign acquisitions of at least 10 per cent stock in German companies developing, manufacturing or producing vaccines, medicines, protective medical equipment and other medical goods for the treatment of highly infectious diseases require prior governmental authorization.
"Section 4 - Restrictions and obligations to act in order to protect public security and external interests
(1) In foreign trade and payments transactions, legal transactions and actions can be restricted and obligations to act can be imposed by ordinance, in order
1.  to guarantee the essential security interests of the Federal Republic of Germany,
2.  to prevent a disturbance of the peaceful coexistence of nations or
3.  to prevent a substantial disturbance to the foreign relations of the Federal Republic of Germany,
4.  to guarantee the public order or security of the Federal Republic of Germany within the meaning of Articles 36, 52(1) and Article 65(1) of the Treaty on the Functioning of the European Union or
5.  to counteract a danger to the coverage of vital needs in Germany or in parts of Germany and thereby to protect the health and life of human beings in accordance with Article 36 of the Treaty on the Functioning of the European Union.
Section 5 - Subject of restrictions
(1) Restrictions or obligations to act pursuant to Section 4 subsection 1 can particularly be imposed on legal transactions or actions with reference to
1. weapons, ammunition and other military equipment and goods for the development, manufacture or deployment of weapons, ammunition and other military equipment; this shall particularly be the case if the restriction serves to implement export controls agreed in international co-operation,
2. goods which are destined for the conduct of military actions.
(2) Restrictions or obligations to act pursuant to Section 4 subsection 1 no. 4 can particularly be imposed with reference to the acquisition of domestic companies or shares in such companies by non-EU residents if the acquisition endangers the public order or security of the Federal Republic of Germany pursuant to Section 4 subsection 1 no. 4. For this to be the case, there must be an actual and sufficiently serious danger affecting a fundamental interest of society. Non-EU acquirers from member states of the European Free Trade Association shall be equivalent to acquirers resident in the EU.
(3) Restrictions or obligations to act pursuant to Section 4 subsection 1 no. 1 can particularly be imposed with reference to the acquisition of domestic companies or shares in such companies by foreigners in order to guarantee essential security interests of the Federal Republic of Germany if the domestic companies
1. manufacture or develop war weapons or other military equipment or
2. manufacture products with IT security functions to process classified state material or components essential to the IT security function of such products or have manufactured such products and still dispose of the technology if the overall product was licensed with the knowledge of the company by the Federal IT Security Agency.
This applies in particular if the security policy interests of the Federal Republic of Germany or the military security provisions are endangered as a consequence of the acquisition.
(4) Restrictions or obligations to act pursuant to Section 4 subsection 1 no. 5 can also be imposed with regard to goods not cited in subsection 1. For this to be the case, there must be an actual and sufficiently serious danger affecting a fundamental interest of society.
(5) Restrictions or obligations to act pursuant to Section 4 subsection 1 can also be imposed with regard to legal transactions or actions of Germans abroad which refer to goods within the meaning of subsection 1 including their development and manufacture.
Section 6 - Individual intervention
(1) In foreign trade and payments transactions, legal transactions and actions can also be restricted or obligations to act can be imposed by administrative act in order to avert a danger pertaining in an individual case to the interests cited in Section 4 subsection 1.
(2) The order shall expire six months after its enactment unless the restriction or obligation to act is imposed by an ordinance.
(3) Section 4 subsections 3 and 4 and Section 5 subsection 5 shall apply mutatis mutandis.[...]" (Foreign Trade and Payments Act (6 June 2013; Federal Law Gazette I p. 1482), last amended by the law of June 2, 2021 (Federal Law Gazette I p. 1275), Sections 4-6 [unofficial translation as last amended by the Act of 20 July 2017])
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"Section 55 - Scope of application of the cross-sectoral assessment
(1) The Federal Ministry for Economic Affairs and Energy can assess whether there will be a likely effect on the public order or security of the Federal Republic of Germany, of another Member State of the European Union or in relation to projects or programmes of Union interest [...] if a non-EU resident directly or indirectly acquires a domestic company or directly or indirectly acquires a stake within the meaning of Section 56 in a domestic company.
(1a) An acquisition within the meaning of subsection 1 also takes place when a non-EU resident acquires
1. a definable part of the operation of a domestic company or
2. all the essential operating equipment of a domestic company or of a definable part of the operation of a domestic company which is needed to maintain the operation of the company or of a definable part of the operation.
(1b) The right to undertake the assessment pursuant to subsection 1 shall not exist if a legal transaction governed by the law of obligations is concluded on the acquisition of a domestic company solely between companies whose respective shares are held in full by the same controlling company, and all contracting parties have their headquarters located in the same third country.
(2) Acquisitions, including by EU residents, shall also be subject to an assessment pursuant to subsection 1 if there are indications that an abusive approach or a transaction circumventing the law has been undertaken not least partly in order to avoid an assessment pursuant to subsection 1.
[...]
Section 55a - Likely effect on public order or security
(1) The assessment of a likely effect on public order or security can in particular consider whether the domestic company
1. operates critical infrastructure within the meaning of the Act on the Federal Office for Information Security,
2. specially develops or modifies software that serves to operate critical infrastructure in specific sectors within the meaning of the Act on the Federal Office for Information Security, [... etc.; please consult the legal text for the full list]
27. directly or indirectly cultivates an agricultural area of more than 10,000 hectares.
(2) Sector-specific software within the meaning of subsection 1 number 2 shall be: [...]
(3) The assessment of a likely effect on public order or security can also consider whether
1. the acquirer is directly or indirectly controlled by the government, including other state agencies or armed forces, of a third country,
2. the acquirer has already been involved in activities which have had undesirable effects on the public order or security of the Federal Republic of Germany or of another Member State of the European Union, or
3. there is a significant risk that the acquirer or the persons acting for him have been or are involved in activities which in Germany would amount to
a) a crime described in Section 123 subsection 1 of the Act against Restraints of Competition, or
b) a crime or administrative offence pursuant to the Foreign Trade and Payments Act or the War Weapons Control Act.
Control within the meaning of sentence 1 number 1 can in particular be exercised on the basis of the ownership structure or in the form of financing provided by the government, including other state agencies or armed forces of a third country, which extends beyond a minor degree.
[...]
Section 56 - Voting rights
(1) Following the acquisition of his stake, the direct or indirect voting rights of the acquirer in the domestic company must amount to or exceed
1. 10 percent of the voting rights in a company cited in Section 55a subsection 1 number 1 to 7,
2. 20 percent of the voting rights in a company cited in Section 55a subsection 1 number 8 to 27 or
3. 25 percent of the voting rights in another company.
(2) Subsection 1 shall be applied mutatis mutandis in the case of an acquisition of further voting rights if prior to the acquisition the direct or indirect voting rights of the acquirer in the domestic company amount to or exceed a share of voting rights within the meaning of subsection 1 and as a result of the further acquisition the total share of voting rights of the acquirer amounts to or exceeds
1. in cases of subsection 1 number 1 a share of 20, 25, 40, 50 or 75
2. in cases of subsection 1 number 2 a share of 25, 40, 50 or 75 or
3. in cases of subsection 1 number 3 a share of 40, 50 or 75
percent of the voting rights.
[...]
Section 59 - Prohibition or instructions
(1) The Federal Ministry for Economic Affairs and Energy can prohibit the direct acquirer from making an acquisition within the meaning of Section 55 until the end of the deadline cited in Section 14a subsection 1 number 2, also in conjunction with its subsections 6 and 7, of the Foreign Trade and Payments Act, or issue instructions to the parties involved in the acquisition and the companies affiliated to them in order to uphold essential security interests of the Federal Republic of Germany, of another Member State of the European Union or in relation to projects or programmes of Union interest within the meaning of Article 8 of Regulation (EU) 2019/452.[...]" (Foreign Trade and Payments Ordinance (2 August 2013; Federal Law Gazette [BGBl.] Part I p. 2865), last amended by the Ordinance of 27 April 2021 (BAnz AT 30.04.2021 V1), Sections 55-56 [unofficial translation])
Foreign Trade and Payments Act (6 June 2013; Federal Law Gazette I p. 1482), last amended by the law of June 2, 2021 (Federal Law Gazette I p. 1275), Sections 4-6 
Foreign Trade and Payments Ordinance (2 August 2013; Federal Law Gazette [BGBl.] Part I p. 2865), last amended by the Ordinance of 27 April 2021 (BAnz AT 30.04.2021 V1), Sections 55-56
[<a href="http://www.gesetze-im-internet.de/awg_2013/">Act</a>],[<a href="http://www.gesetze-im-internet.de/englisch_awg/index.html">Act_Eng</a>],[<a href="http://www.gesetze-im-internet.de/awv_2013/">Ordinance</a>],[<a href="http://www.gesetze-im-internet.de/englisch_awv/index.html">Ordinance_Eng</a>]