Germany blocked the sale of two strategically important companies to Chinese investors as the government in Berlin toughens its stance on attempts to scoop up critical assets and ‘Made in Germany’ technology, reports Bloomberg. The German government blocked the sale of Elmos Semiconductor SE’s wafer facility to a Swedish subsidiary of China’s Sai MicroElectronics as well as a proposed takeover of ERS Electronic GmbH.
“The times are over when one just sat back” and assumed that the German government shouldn’t intervene in such deals, Economy Minister Robert Habeck told reporters in Berlin, confirming the decision on Elmos. “These decisions are now embedded in a context which is highly political.”
Chancellor Olaf Scholz’s ruling coalition agreed to veto both deals during its weekly cabinet meeting Wednesday following a recommendation by the economy minister, according to a person familiar with the decision, who asked not to be identified discussing confidential information.