Germany’s government is set to block the takeover of a German company by Chinese investors, marking the first time it has used a tough foreign investment law passed last year to veto an M&A deal, reported the Financial Times.
The German business magazine Wirtschaftswoche reported that the government was blocking the acquisition of Leifeld Metal Spinning, a machine tool manufacturer based in the north-western town of Ahlen, by a Chinese company.
After investigating the deal, ministers had concluded it would “endanger public order and security in Germany,” according to the DPA news agency.
The deal was investigated by the German economics ministry, which has the authority to look at any acquisition by a company based outside the EU that is buying 25% or more of an entity based in Germany.
Full Content: Financial Times
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