Germany blocks Cosco’s Zippel purchase on security grounds
Germany’s government blocked Chinese state-owned Cosco from buying 80 per cent of Hamburg logistics company Zippel. The Economy Ministry said the sale would deepen dependencies and endanger supply chains. Competition authorities had cleared the deal in February; the new prohibition followed a foreign-investment security review. The company connects ports with inland transport, and ministries also raised concerns about its potential significance for military logistics.
Geopolitics··Evening
Cabinet stops the sale of an 80 per cent stake
Germany’s government blocked Chinese state-owned shipping company Cosco from acquiring Hamburg-based Konrad Zippel. An Economy Ministry spokesperson confirmed the decision after Wednesday’s cabinet meeting. The ministry assessed that the purchase would deepen dependencies and endanger supply chains in Germany and the European Union.[1], [2]
The transaction concerned the sale of 80 per cent of Zippel’s shares. The ministry spokesperson said Germany generally welcomes foreign investment but that some investments can endanger national security.[1]
Military logistics also enters the security assessment
Zippel carries goods by road, rail and ship and forms part of transport infrastructure surrounding Hamburg and Bremerhaven ports. Ministries’ concerns extended beyond civilian freight to logistical support for the Bundeswehr, Germany’s armed forces, and NATO. A confidential document addressed the risk that European transport infrastructure influenced by China could become unavailable for unrestricted use in a crisis or conflict.[1]
Competition clearance is followed by a security prohibition
Germany’s competition authority, the Bundeskartellamt, cleared the acquisition of the 80 per cent stake in February. The federal government’s prohibition instead rests on investment-review powers under foreign economic legislation. That process permits acquisitions by overseas investors to be blocked when public order or security is endangered. The ministry determined that the security conditions were not met for this transaction.[1]
