This study provides the rst comparative evidence of foreign and domestic acquisitions in Germany. A propensity score matching approach combined with a dierence-in-dierence estimator were performed separately for foreign and domestic acquisitions to account for a general takeover eect. The study is based on new high-quality panel data for manufacturing enterprises, provided by German ocial statistics. The results indicate a negative impact of foreign takeovers on employment and no productivity improvements for the period 2007 to 2009. This evidence contradicts existing empirical studies for Germany which nd signicant productivity improvements and no changes in terms of employment. These ndings are of particular interest to Germany as one of the most important FDI in ow destinations worldwide. They contribute to the foreign ownership performance premium literature as well as improving the understanding of foreign acquisition consequences, a subject of utmost
topicality.