The German government blocked the acquisition of a German logistics company by COSCO, China's major state-owned shipping company. The move comes amid concerns about disruption to supply chains.
The German government blocked the acquisition of a German logistics company by COSCO, China's major state-owned shipping company. Although the purpose of the formal announcement has not been detailed at this stage, a review of capital relationships at the national level is believed to be under way. Concerns over the stability of Europe's logistics networks have grown amid economic and industrial developments since September.
The move is being viewed as an indication of the government's perception of the risks associated with Chinese companies acquiring critical logistics assets. Market attention is focused on the risk that supply chain disruption could be prolonged, and the development could affect future foreign investment and acquisition transactions.