Germany calls a halt to the acquisition of German enterprises by Chinese Enterprises: it will sue the German government

category:Finance
 Germany calls a halt to the acquisition of German enterprises by Chinese Enterprises: it will sue the German government


The reason given by the German government is that the transaction violates the German foreign trade regulations and poses a real and serious danger to the public order or security of Germany. IMST has developed key components of the German observation satellite terrasar-x. If not, the relevant expertise will flow to China and contribute to Chinas armaments. The acquisition also undermines Germanys technological sovereignty in the field of future mobile radio systems, the German government said.

In addition, the German government believes that IMST benefits from German public funds. The German Ministry of economy estimates that over the past decade, the company has received 127 million euros from the state for various research projects. According to manager magazine, it is politically sensitive for German officials to sell companies backed by taxpayers money to China.

Regarding the German governments decision, IMSTs boss Waldo said there were many mistakes in the German governments judgment, and the company will sue in court. He strongly opposed the company being classified as a military technology supplier. In 28 years, we have never received orders from the Bundeswehr. If the company does not sell, it will be in trouble. The first deal between IMST and IMST has been concluded in 2018. At that time, Chinese companies took over about 22% of the voting rights of IMSTs shareholders. That year, the German government changed the threshold for government review of corporate acquisitions from the previous 25% stake sale to 10%. In 2019, Chinese companies applied to the German Federal Ministry of economy to take over nearly 95% of the voting rights of shareholders in IMST, but it has not been approved. Source: Global Times Author: Author: Aoki editor: Wang Xiaowu_ NF

Regarding the German governments decision, IMSTs boss Waldo said there were many mistakes in the German governments judgment, and the company will sue in court.

He strongly opposed the company being classified as a military technology supplier. In 28 years, we have never received orders from the Bundeswehr. If the company does not sell, it will be in trouble.

The first deal between IMST and IMST has been concluded in 2018. At that time, Chinese companies took over about 22% of the voting rights of IMSTs shareholders. That year, the German government changed the threshold for government review of corporate acquisitions from the previous 25% stake sale to 10%. In 2019, Chinese companies applied to the German Federal Ministry of economy to take over nearly 95% of the voting rights of shareholders in IMST, but it has not been approved.