Most of the DAX companies are controlled by investors from outside Germany - Foreign dominance in Dax companies predominantly lies with external investors.
In a recent study conducted by consulting firm EY, it was revealed that foreign investors now hold a majority stake in German DAX companies. The study, which was carried out in Stuttgart and Frankfurt, found that foreign investors owned 52.6% of the share capital in the DAX 40 companies in 2024, while German investors held around 33.1%.
The study also showed a significant increase in the share of North American investors, with their ownership rising from 17.1% in 2010 to 25.4% in 2024. This represents a substantial 23.9% of the shares in the DAX.
The dividends paid by these companies also reflect this trend, with nearly half (€26.9 billion or 49.8%) of the €54 billion total dividends paid in 2024 flowing to foreign investors. Domestic investors received around €21.7 billion (40.1%).
However, the study revealed variations in foreign ownership among the DAX companies. For instance, biotech firm Qiagen has a very high foreign ownership of 93%, while Porsche AG remains predominantly German-owned due to majority holdings by Volkswagen AG and Porsche Automobil Holding SE, with only 12% of its shares owned by foreign investors.
Henrik Ahlers, CEO of EY, views the strong engagement of foreign investors as "proof of the continued great attractiveness of German top companies and the trust they enjoy worldwide." He believes that Germany is now just one market among many for these firms, which benefit from international investors bringing knowledge and technologies that enhance innovation.
It's important to note that the study does not provide information on the specific companies within the DAX 40 that have seen an increase or decrease in foreign ownership, nor does it provide information on the ownership of the remaining DAX companies for which data was not available.
The findings of this study illustrate a significant and growing role of international investors, especially from North America, in major German companies listed on the DAX, signaling Germany’s integration into global financial markets and the international confidence in its corporate sector.
- To support innovation and enhance value in German companies, vocational training programs could be collaboratively developed between local communities, industry, finance, and foreign investors, mimicking the knowledge and technology transfer observed from North American investors.
- Given the increasing presence of foreign investors in major German companies on the DAX, it's wise for implementing community policies that foster a business environment conducive to vocational training, thereby ensuring the sustainable growth of these companies and maintaining competitiveness in the global financial market.
