New German rules unlikely to put brake on Chinese auto sector deals


Germany has become the first European Union country to tighten its rules on foreign corporate takeovers following a series of Chinese deals giving access to Western technology and expertise.

The new regulations will allow the German government to block takeovers if there is a risk of critical technology being lost abroad. They will take effect shortly with no need for parliamentary approval.

Four German firms catering to the auto industry — FFT, Eisenmann, ZF Body Controls and Eissmann Automotive — are currently talking to potential Chinese buyers, but do not expect political interference, the sources said.

Source: New German rules unlikely to put brake on Chinese auto sector deals

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