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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.

Angela Merkel.

Photographer: Jacobia Dahm/Bloomberg
Updated on

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.