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Berlin ready to use new takeover veto after Chinese bid for Leifeld – report Berlin ready to use new takeover veto after Chinese bid for Leifeld – report
(35 minutes later)
Berlin signaled on Wednesday that it was prepared to use its new power to veto foreign takeovers of German companies in the case of a Chinese bid for toolmaker Leifeld, Reuters reports. Earlier on Wednesday, Leifeld’s majority owner Georg Koffler said that China’s Yantai Taihai had dropped its attempt to buy the company ahead of an expected veto by the German government. Berlin tightened controls on foreign investments last year after a series of high-profile takeovers by Chinese firms fuelled concern over the security implications of China’s growing appetite for European high-tech firms. “The Cabinet today decided to grant authorization for a veto,” a government source said. “This authorization allows for vetoing the purchase of a domestic company by a foreign company for security reasons.” Berlin signaled on Wednesday that it is prepared to use its new power to veto foreign takeovers of German companies in the case of a Chinese bid for toolmaker Leifeld, Reuters reports. Earlier on Wednesday, Leifeld’s majority owner Georg Koffler said that China’s Yantai Taihai had dropped its attempt to buy the company ahead of an expected veto by the German government. Berlin tightened controls on foreign investments last year after a series of high-profile takeovers by Chinese firms fueled concern over the security implications of China’s growing appetite for European high-tech firms. “The cabinet today decided to grant authorization for a veto,” a government source said. “This authorization allows for vetoing the purchase of a domestic company by a foreign company for security reasons.”