NEWSLETTER

July 2008

German American Chamber of Commerce, Inc.

Major Acqusitions In Pharmaceutical Industry

The two German subsidiaries Fresenius and Boehringer have made enormous investments in pharmaceutical companies in the U.S.

Fresenius SE said it has agreed to buy U.S. generic drug maker APP Pharmaceuticals for $3.7 billion in cash in a deal that will give the German health care company more opportunities in the North American market for drugs administered intravenously. Fresenius will pay $23 a share for the Schamburg, Ill.-based APP Pharmaceuticals in the deal, along with a registered and tradable contingent value right that could result in as much as $6 a share, provided APP reaches adjusted pretax profit targets from 2008 to 2010, the companies said in a statement.

Boehringer Ingelheim GmbH said it has agreed to take over U.S. company Actimis Pharmaceuticals Inc. for up to $515 million, to bolster its research into respiratory diseases. The purchase will be carried out in gradual steps and Boehringer will pay the full price. The deal marks the first takeover of a biotechnology firm for Boehringer, which has remained family-owned since it was founded in 1885. It has grown to become Germany's second-largest pharmaceutical company after Bayer AG.

+++++ VW's decision on U.S. plant expected after July 15 +++++ Daimler's Smart, BMW's Mini gain as Americans fret over fuel +++++ Fresenius paying $3.7B for U.S. drugmaker APP +++++ Germany-based mtm laboratories appoints new CEO +++++ Siemens seeks buyer for Churchill operation +++++ German R&M ShipTec eyes Florida for U.S. headquarters +++++ WALA Heilmittel could increase sales 8% in U.S. +++++ Rampf invests $1 million in U.S. production +++++ German company to build in Conroe +++++ T-Mobile introduces T-Mobile@Home +++++ Vitakraft buys Sun Seed +++++ Germany-based translation company opens U.S. branch +++++ U.S. approves Germany's KfW unit opening NY office +++++ DekaBank eyes $776 million U.S. property spree +++++ Audi CEO optimistic to reach U.S. 2015 sales targets +++++ SAP to buy small U.S. manufacturing software maker +++++ Solon buys a 16% stake in U.S. rival SpectraWatt +++++ Auto supplier to add jobs, lands tax break +++++ Lidl plans to enter U.S. market by 2012 +++++ Flabeg strengthens its position in the U.S. market  +++++ German auto supplier may expand Brighton plant +++++ RWE acquires 50% stake in Excelerate Energy +++++ Siemens Energy picks Boulder for wind R&D center +++++ Visionapp announces U.S. subsidiary +++++ Nordex to invest $100 mln to set up U.S. plant +++++ Second German solar firm setting up in Tucson +++++ DHL to outsource some U.S. operations to UPS +++++

>>> Read more news in the Ticker Archive

Research and development (R&D) is one of the many reasons why companies are investing in Germany. In fact, overall the country is perceived as the gateway to Europe and is looking better than ever to U.S. investors. In 2007, 76% of American companies in Germany saw improvements in revenue. Additionally, 83% of U.S. companies put either a medium or strong focus on Germany (click on image to the right).

Invest in Germany, the inward investment promotion agency of Germany, advises companies on possible market entry strategies, provides information on the business environment, such as the corporate investment  framework, tax regulations, and subsidies, as well as offers comprehensive project management and support services from site selection to the final realization of the investment. Interested U.S. firms will now find a representative of Invest in Germany at the GACC NY office. For further information please contact Claus Habermeier.

 >>> Read the full article on page 6 in the July issue of the German American Trade.

As discussed in the cover story of the German American Trade magazine in October 2007, the new container security bill of the Bush administration causes a lot of problems for freight companies, according to a study by the World Customs Organization (WCO). The new law requires 100 percent screening of U.S.-bound maritime container cargo from ports around the world. But the WCO and various port authorities will be unable to provide the new equipment and staff needed to scan all containers by the law's July 1, 2012, deadline, said Michel Danet, secretary general of the WCO.

The WCO released a study during a two-day conference on container security which concluded that the U.S. law would cost millions to implement and cause massive logistical problems for ports and damage world trade. The world's top ports are unlikely to meet the 100 percent scanning rate by 2012, said Frederic Carluer, a professor from Le Havre University in France, who carried out the WCO study. "If this law goes ahead in 2012, this would entail a financial cost ... an immediate slowdown in the economy," Carluer said.

>>> Read the full cover story in the October 2007 issue of the German American Trade magazine.

The 4th German American Renewable Energy Conference, held in Syracuse, NY on June 24th was a great success for all those involved. Six leading German companies and ten research organizations gave presentations on latest biomass technologies and developments to a wide audience of 250 attendees. The aim of the conference was to initiate a transatlantic dialogue between German and U.S. companies in regard to the deployment of biomass. The Central New York government and business sectors readily recognized the importance of biomass and these sectors are already coordinating with the German companies in setting up actual development projects. For further information contact renewable energies specialist Sebastian Göres, Manager Consulting Services at the GACC NY.

This year's Security 2008 -- the World Forum for Security and Fire Prevention -- from October 7-10, 2008 in Essen, Germany, offers more than ever. Fire Prevention has been added to the title, allowing one complete hall to be reserved for 100 companies and leading associations dealing with fire protection and prevention. The security segment is as strong as ever with a total of more than 1,100 exhibitors from 50 countries. The Federal Association for Technical Fire Protection will be Messe Essen’s partner. For more information please contact Karen Vogelsang at the U.S. Representative Office of Essen International Trade Fairs at the GACC NY.

Editor & Advertising Coordinator Nicola Michels
Tel.: 212.956-1770 • Fax: 212.974-8867 • nmichels@gaccny.com

German American Chamber of Commerce. Inc. • Telephone: 212.974-8830 • www.gaccny.com

The German American Chamber of Commerce New York (GACCNY) gives no warranty nor accepts responsibility for the accuracy or the completeness to the information contained in this newsletter. The GACCNY cannot and does not make any representations or warranties with respect to any information, product or service available through any third party site. EIN: 13-1893850

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