Deals

Germany Steps Up Efforts to Rebuff China's Swoop for Assets

  • Merkel’s government thwarts China with power grid purchase
  • German cabinet set to block takeover of engineering company

Inside a control center owned by 50Hertz Transmission GmbH.

Source: 50Hertz Transmission GmbH

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Germany moved to rebuff two Chinese purchases, swooping in to nab a stake in one of country’s largest power-grid operators and rejecting the acquisition of another company.

State-owned investment bank KfW will temporarily acquire a 20 percent holding in 50Hertz Transmission GmbH, thwarting an attempt by a Chinese firm. The country is also set to block the acquisition of an engineering company by investors from the world’s second-largest economy in what would be the first outright ban by Chancellor Angela Merkel’s Cabinet, according to a government official.