Cross-Border M&A & Market Entry: Germany ↔ India
For the German Mittelstand entering India, for German acquirers of Indian targets, and for Indian corporates acquiring in Germany — European origination paired with SEBI-regulated Indian execution, in association with Equirus Capital.
Why this corridor, now
Germany is the European Union's largest economy and its most acquisitive mid-market. India is the fastest-growing large economy and, since the conclusion of the India–EU Free Trade Agreement in January 2026, a progressively more open one. German engineering and Mittelstand depth on one side; Indian scale, cost position and demand on the other.
A currency tailwind reinforces it: the Chinese yuan has appreciated roughly 18% against the rupee over the past year, sharpening India's relative competitiveness and accelerating the “China+1” diversification of German supply chains — particularly in auto components and industrials. Yet the mid-market of this corridor (USD 100 million to USD 1 billion) remains structurally underserved by advisors strong on only one side of the deal.
The Germany–India corridor is most active in auto components and industrial machinery, chemicals, renewable energy, and IT and software services.
Who we work with
- German acquirers of Indian targets — buy-side advisory in industrials, technology, healthcare and renewables.
- Indian acquirers of German Mittelstand targets — outbound support under India's Overseas Investment Rules, including share-swap structures.
- German companies entering India — market entry, joint ventures and greenfield/brownfield structuring under India's FDI framework.
- Sponsors and family-controlled groups — carve-outs, minority investments with governance rights, and technology-plus-equity structures.
What we do
IndoWest provides European-side origination, structuring and process management. Equirus Capital — a SEBI-registered Category I Merchant Banker that has advised on 315+ transactions worth over USD 14.9 billion — provides Indian execution, including the valuation a cross-border share swap legally requires. The combined structure delivers origination and Indian regulatory depth in a single coordinated mandate. See the full scope on our cross-border M&A advisory page, or the wider context in our guide to Europe–India M&A.
The regulatory map, in brief
On the Indian side: FEMA / NDI Rules (as amended in 2024, liberalising cross-border share swaps), the Overseas Investment Rules 2022, the SEBI Takeover Code for listed targets, and CCI merger control (including the Deal Value Threshold). On the German side: BaFin and EU/German FDI-screening rules where relevant. The India–Germany double-tax treaty may provide relief on capital gains and dividends.
Frequently asked questions
How does a German company acquire an Indian company?
A German acquirer works under India's FEMA / NDI Rules (pricing guidelines, sector caps) and, for a listed target, the SEBI Takeover Code. IndoWest provides European-side origination and process management; Equirus Capital, a SEBI-registered Category I Merchant Banker, executes on the Indian side including the mandatory valuation.
Can shares be used as consideration (share swap)?
Yes. Since the 2024 amendment to the NDI Rules, cross-border share swaps (FDI–ODI and secondary FDI–FDI) are permitted under the automatic route, removing the prior RBI-approval requirement. The valuation must be performed by a SEBI-registered merchant banker.
How long does a mid-market Germany–India deal take?
Typically six to twelve months from mandate to closing, depending on sector, regulatory complexity and target cooperation.
Who advises on which side?
IndoWest Capital handles European-side origination, structuring and process management; Equirus Capital provides SEBI-regulated Indian execution. Engagement letters are jurisdiction-specific and reflect each entity's regulatory role. IndoWest does not provide investment management or activities reserved to SEBI-registered intermediaries.
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