Germany targeting China in new rules about foreign takeovers, media report says
- Update of international trade regulation would allow government to review or bloc purchases of stakes as low as 10 per cent in ‘security relevant’ companies
Germany plans to toughen rules on non-EU share purchases and acquisitions of its strategic companies, a report said on Sunday, amid growing disquiet about takeovers by Chinese firms.
Chancellor Angela Merkel’s cabinet plans to approve the law change on Wednesday and send it to parliament, the Handelsblatt business daily said, without citing its sources.
The update of the Foreign Trade Regulation would allow the German government to review or bloc foreign purchases of stakes as low as 10 per cent in such companies, down from 25 per cent now.
The rule would apply to “security relevant” companies that are crucial to Germany’s defence or “critical infrastructure”, including many hi-tech and power companies but also large food producers.
Germany and other European Union member states have voiced growing concern in recent years as Chinese companies have bought, or acquired controlling stakes in, airports, harbours and hi-tech firms.
