BERLIN --- Berlin has intervened in the takeover of a small but innovative German aerospace company, using a new law that gives it enhanced powers to block Chinese deals in strategic sectors of the economy.
Cotesa, which makes parts for aircraft makers such as Airbus and Boeing, was due to be bought by a subsidiary of the state-run China Iron & Steel Research Institute Group for a price German media reported at between €100m and €200m.
But Germany’s economics ministry has now stepped in to put the transaction on hold. A ministry spokesman confirmed it was investigating the deal “to check whether it complies with Germany’s law on foreign trade”.
Berlin moved last year to expand its powers to stop Chinese groups acquiring German companies amid creeping concerns about the scale of Chinese M&A activity in Germany’s high-tech sector. (end of excerpt)
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