December 13, 2018, 13:52

German Fund to Prevent Takeovers of Tech Firms by Chinese Bidders – Reports

German Fund to Prevent Takeovers of Tech Firms by Chinese Bidders – Reports

The German government’s decision to take quick measures comes following the purchase earlier this year of a 9.7 percent stake in Daimler by Chinese car producer Geely and sudden takeover of robotics company Kuka by China’s Midea in 2016.

Germany’s authorities have started to take measures to deal with a flow of Chinese bids for stakes within Germany’s technological industry, Reuters reported citing a government source.

The source noted that the German authorities sought the establishment of a fund that would allow businesses to find a replacement for a potential Chinese stakeholder if no private investor could be identified, or if the state development bank KfW could not provide adequate guarantees.

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According to the source, approximately 1 billion euros could become available “as a last resort.” However, no immediate details were provided on how the fund would get money.

In addition, top officials are working to alter foreign trade laws in order to safeguard Germany’s ownership of vital technologies.

“This is an issue that we are working on very intensely,” the source was quoted saying by Reuters.

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In 2017, Chinese businesses completed 30 acquisitions in Germany, which is almost twice as much as in 2016. Moreover, proposals from China were estimated at 40 percent of the 165 reviews of global ownership plans within the last three year, the source added.

Earlier this year, Chinese car manufacturer Geely acquired a 9.7 percent stake in Daimler, and in 2016, China’s Midea suddenly purchased German robotics firm Kuka.

Source: sputniknews.com

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