Proposals for a new German Takeover Act to replace existing voluntary rules go a long way to streamlining the way mergers and acquisitions are handled, according to German lawyers.

The need for tighter governing by the German Federal Ministry of Finance became ever more apparent when the Vodafone/Mannesmann merger discussions were taking place earlier this year. This was the largest cross-border hostile takeover bid Germany had seen and it led to criticisms from some investment bankers that the German authorities were not adequately equipped to deal with the transaction.