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18 June 2020, 09:21 BST Updated on 18 June 2020, 12:31 BST
"Chancellor Angela Merkel’s move to tighten protections for German companies from foreign takeovers gained final approval in parliament on Thursday, amid concern about potential acquisitions by firms bankrolled by China and other nations.
Economy Minister Peter Altmaier, a close Merkel ally, told lawmakers before the vote that the screening legislation is not meant to impede investment into Europe’s biggest economy, but to help shield key German companies, including those that may be more vulnerable due to the fallout from the coronavirus.
Peter Altmaier, right, in the Bundestag in Berlin, on June 18.
Photographer: Krisztian Bocsi/Bloomberg
“Our hidden champions, our small and mid-sized companies, and firms that are temporarily suffering because of the coronavirus pandemic, should not all become defenseless takeover targets,” Altmaier told lawmakers in the Bundestag in Berlin.
“We want to know what is happening, we want to know who is behind potential investors,” he added. “Not all those who want to invest have equally honest intentions.”
The law will enable the government to block acquisitions that present “potential interference,” a lower threshold than previous rules that envisage a security threat. It also lowers the minimum for scrutinizing investments in the health-care sector. Deals involving a stake of at least 10% will be examined, compared with 25% previously.
Germany Moves to Shield Key Companies From Foreign Takeovers
"Chancellor Angela Merkel’s move to tighten protections for German companies from foreign takeovers gained final approval in parliament on Thursday, amid concern about potential acquisitions by firms bankrolled by China and other nations.
Economy Minister Peter Altmaier, a close Merkel ally, told lawmakers before the vote that the screening legislation is not meant to impede investment into Europe’s biggest economy, but to help shield key German companies, including those that may be more vulnerable due to the fallout from the coronavirus.
Peter Altmaier, right, in the Bundestag in Berlin, on June 18.
Photographer: Krisztian Bocsi/Bloomberg
“Our hidden champions, our small and mid-sized companies, and firms that are temporarily suffering because of the coronavirus pandemic, should not all become defenseless takeover targets,” Altmaier told lawmakers in the Bundestag in Berlin.
“We want to know what is happening, we want to know who is behind potential investors,” he added. “Not all those who want to invest have equally honest intentions.”
The law will enable the government to block acquisitions that present “potential interference,” a lower threshold than previous rules that envisage a security threat. It also lowers the minimum for scrutinizing investments in the health-care sector. Deals involving a stake of at least 10% will be examined, compared with 25% previously.
Germany Moves to Shield Key Companies From Foreign Takeovers
