GERMANY: New Restrictions on Foreign Investors
The Chancellor, Angela Merkel, states that the core objective of the Economy Ministry’s proposal is to avoid Germany losing some of their control to foreign countries. This is in response to the rapid increase of business activity from Chinese investors.
And so, in order to protect the countries’ technical expertise, the German government has now initiated a new system to make it easier for the country to veto certain acquisitions by foreign investors.
According to other sources, the new initiative allows the German government to prevent foreign takeovers, specifically to software companies that cooperate with banks, hospitals, airports and managing telecommunications or cloud data.
The new directive is the result of the 2016 controversial acquisition by the Chinese company Midea who took over Augsburg robotics maker Kuka. Due to Brussels being answerable for questions relating to trade, Germany is supposedly also working on a suggested reform at EU level.
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