GERMANY: Germany Moves to Block Takeovers by Foreign Investors

It has been reported that Germany has tightened its rules on foreign corporate takeovers, following a series of Chinese deals giving access to Western technology and expertise.

The new regulations will allow the German government to block takeovers if there is a risk of critical technology being lost abroad. They will take effect shortly with no need for parliamentary approval in a bid to protect critical infrastructure, including power grids and hospitals.

The move reflects pressure across Europe to limit takeovers by Chinese state-backed groups of prized European assets.

The purchase last year of German robotics maker Kuka (KU2G.DE) by Chinese company Midea (000333.SZ) raised concerns that China was gaining too much access to key technologies while shielding its own companies from foreign takeovers.