I'll add a bit more to Germanfan's post of a couple of years ago.
JP Sauer, for instance, is the oldest gun manufacturing entity in Germany, dating its founding to 1750's. Headquartered in Suhl, it continued manufacturing sporting and military arms through the end of WWII. The Soviets took over the facility and starting producing various arms under what was essentially forced labor as a war reparation. The DDR continued that effort following its founding in '48. Meanwhile, the actual legal rights to the JP Sauer name were sold to a West German consortium where it has traded hands several times since the war, but was always producing fine guns that are recognized as actual post-war Sauers.
The East German Guns are interesting. The name was used on those products from 1953-1970. Most were built on pre-war designs and offer an interesting commentary on East German post-war production standards in a communist system. One gun will be indistinguishable quality-wise from its pre-war ancestor. The next will have quality metal work attached to a stock with the looks and fitting of a 2x4. Another will have excellent engraving while one from the same production year will look like a Picasso canvas. Generally, the earlier DDR guns are a bit better quality than the later ones because some of the original surviving Sauer filers and stockers were building them.
As you note, the gun above was indeed manufactured in April of '58 making it one of the earlier East German products.
The East Germans did the same sort of production with the Zeiss name. Those scopes and binos are not comparable to the actual Zeiss products produced in then West Germany.
The Merkel name had a somewhat different history. Founded just before the turn of the century, its production facility, also in Suhl, was largely intact following the Soviet takeover. In '48 the family was forced to sell its ownership to the DDR - therefore the DDR actually owned the production rights (unlike Sauer). The state was therefore incentivized to maintain a quality production line, keeping it largely distinct from the "Sauers" and "Simsons" being stamped out nearby. By the 1970's, the socialist Merkel company was again producing quality firearms that were recognized as nearly the equal of the pre-war product. They were widely sold and well respected in the West. With the collapse of the DDR, Merkel gradually modernized its production significantly (while changing ownership several times) and has not looked back.
So, with a post-war East German Sauer (or Simson) it is best to judge each gun individually. There are indeed some real treasures to be found.
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