Germany blocks Cosco’s purchase of 80% of Zippel shares — Anadolu Agency

Germany has blocked the acquisition by Chinese state-owned shipping company Cosco of 80% of the shares in Hamburg logistics firm Zippel. The decision was made for security reasons, Anadolu Agency reports.

Concerns over dependence

A spokesperson for Germany’s Ministry of Economic Affairs said after a government meeting that the ministry would issue an official order prohibiting the deal. According to the spokesperson, the acquisition could increase dependence and jeopardize the resilience of supply chains in Germany and the European Union.

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Screening of foreign investments

The ministry spokesperson noted that Germany welcomes foreign investment, but legislation allows the government to review acquisitions of German companies by foreign investors on a case-by-case basis. Such a review assesses whether a deal could threaten public order or security.

Cosco is among the world’s largest shipping companies by cargo volume. The company already owns a 24.99% stake in the Tollerort container terminal in Hamburg.