Article Post on 15 September 2020

Luxembourg – A European Powerhouse for Cross-Border Corporate Transactions

_Luxembourg is well-known as a global hub for investment funds. Recent data collected by Wildgen Director Dr. Thomas Biermeyer together with his Maastricht University colleague Dr. Marcus Meyer stresses however also the position of Luxembourg as a powerhouse for cross-border corporate transactions, being cross-border mergers, cross-border conversions and cross-border divisions. On an overall level, only Germany boasts more cross-border transactions, whereas Luxembourg is clearly the leader in the area of cross-border conversions.

The data shows that between 2007 and 2019, Germany counted in total 1.810 transactions, Luxembourg 1.722 transactions, followed by the Netherlands with 1.585 transactions and the United Kingdom with 1.070 transactions.

As can be seen in Figure 1, with 625 cross-border conversions, Luxembourg is the leader in the area of cross-border conversions.

Figure 1 Thomas Biermeyer

Figure 1 Aggregated overview of cross-border transactions in the EU/EEA per country (both entry and exit cases combined) (N= 12,470)1
Source : T. Biermeyer & M. Meyer, Cross-border Corporate Mobility in the EU: Empirical Findings 2020 (Edition 1) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3674089

In the area of cross-border conversions, Luxembourg is leading with 625 identified transactions before Italy with 384 transactions, France with 348 transactions, the Netherlands with 319 transactions and Germany with 288 transactions. 

Figure 2 Thomas Biermeyer

Figure 2 Absolute number of CBCs per country, divided by exiting (red) versus entering companies (green), between 2007 and 2019 (N = 2,903)
Source : T. Biermeyer & M. Meyer, Cross-border Corporate Mobility in the EU: Empirical Findings 2020 (Edition 1) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3674089

Dr. Thomas Biermeyer and his colleague Dr. Marcus Meyer however believe that the leading position of Luxembourg in the area of cross-border conversions is even much stronger than currently reflected in the data. Dr. Thomas Biermeyer states: “Due to the amount of cross-border conversions involving a company governed by the laws of Luxembourg, we have not yet been able to collect all data for the period of 2007 to 2020. We therefore believe that in our next report, Luxembourg will have even a stronger position in the area of this corporate transaction than reflected at the moment.” 

The full report recently published by Dr. Thomas Biermeyer and Dr. Marcus Meyer with more data on Luxembourg and all other EU Member States can be downloaded here.

Should you like to receive more information on the possibilities to carry out a cross-border merger, division or conversion through Luxembourg, feel free to contact our expert Dr. Thomas Biermeyer

1. In this overview, transactions to and from third countries are included in the reporting.

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