The German government said Friday it took a minority stake in electricity transmission firm 50Hertz for "national security" reasons, thwarting Chinese investors from buying into the strategic company. "On national security grounds, the federal government has a major interest in protecting critical energy infrastructure," the finance and economy ministries said in a joint statement.
Berlin has therefore tasked a public bank with purchasing a 20-percent stake put up for sale by Australian infrastructure fund IFM and which has been sought by China's State Grid. The unusual step comes as Germany views China's huge interest warily, following a string of high-profile investments by the Asian giant in sectors ranging from robotics to automobiles to finance.
The Chinese group had already tried to take a minority stake in 50Hertz earlier this year. But their first attempt was blocked as 50Hertz's majority shareholder - Belgian power transmission system operator Elia - snapped up the stake and expanded its holdings to 80 percent. As part of a spending spree across Europe, Chinese companies have bagged airports, harbours and engineering firms.
Germany, with its high-tech firms, has been a prime target. Earlier this year, Geely's billionaire boss Li Shufu shocked the country's coveted automobile sector when he took almost 10 percent in Daimler, which owns the Mercedes brand. A study by consultancy EY found Chinese companies bought 54 German firms last year and invested $13.7 billion in Europe's largest economy. Underlining German concerns over the spate of Chinese acquisitions, domestic intelligence chief Hans-Georg Maassen had said in May that "one won't need to spy if one simply buys up entire companies." But Beijing has insisted that it has no ulterior motives.
During a visit to Germany in July, Prime Minister Li Keqiang urged Berlin to grant Chinese companies the access that German firms enjoy in China. "Our investments do not threaten your national security. Through joint projects, we want to learn from your experiences and technologies," he said. Not only Germany, but the European Union as a bloc, has been watching the Chinese advances anxiously.
Chancellor Angela Merkel has also raised concerns over China's heavy investments in the western Balkans as part of Beijing's plans for a modern-day Silk Road. Current legislation in Germany allows the government to block an investment from a non-EU country only if the investor wants to take 25 percent or more.
Comments
Comments are closed.