Berlin has intervened to stop the Chinese acquisition of a German company, the second time it has done so in less than a week, in a further sign of growing protectionist sentiment against Chinese M&A.
The German economics ministry said it had instructed KfW, the state-owned development bank, to acquire a 20 per cent stake in high-voltage power network operator 50Hertz on behalf of the government. A Chinese entity, State Grid Corp of China, had been seeking to buy the stake.
“The government has a major interest in protecting critical energy infrastructure, on grounds of national security,” the economics ministry said. “Ordinary people and businesses expect a reliable energy supply.” The statement said the deal would be a “bridge solution” and the stake would be resold later.