A new law (Risikobegrenzungsgesetz) limiting the risks in financial investments is increasing the transparency of private transactions by making the standards applicable to takeovers of public companies apply to such transactions.

The management of the acquired company has to provide its economic committee or, if such a committee does not exist, the works council with information about the acquiror and its intentions regarding the future business activities and the impact on employees. As, however, the management has no statutory information claim against the seller or the acquiror, it seems doubtful that the management will obtain the necessary information, if it is not provided voluntarily.

The information obligation is triggered by takeovers and also applies in a competitive offer situation.