Deals
Germany Toughens Stance and Blocks China Deal
- Merkel’s Cabinet vetoes possible takeover of Leifeld Metal
- Economy Ministry cites security reasons for decision
Angela Merkel.
Photographer: Jacobia Dahm/BloombergThis article is for subscribers only.
Chancellor Angela Merkel’s government for the first time vetoed a possible Chinese takeover of a German company, signaling a toughening stance toward investments from the country.
Merkel’s Cabinet on Wednesday voted to block the potential purchase of German machine tool manufacturer Leifeld Metal Spinning AG by a Chinese investor. The government took the precautionary measure even though Yantai Taihai Group indicated at the last minute that it will withdraw its offer.