Germany may set up fund to fend off Chinese tech takeovers – report

Germany may set up fund to fend off Chinese tech takeovers – report

Germany is taking steps to counter a surge in Chinese bids for stakes in German technology companies. The measures may include the creation of a billion-euro fund that could rescue such firms in financial trouble, Reuters said, citing a government source. Officials are also working on changes to foreign trade regulations to ensure that key technologies remain in German hands. These would include government reviews of foreign acquisitions of stakes in companies below the current 25-percent threshold, and expanding which types of purchases must be examined. The takeover of robotics firm Kuka by China’s Midea in 2016 and the purchase earlier this year of a 9.7-percent stake in Daimler by Chinese carmaker Geely could galvanize Berlin into action. Chinese companies completed 30 acquisitions in Germany last year, nearly double the number for 2016, while Chinese proposals accounted for 40 percent of the 165 reviews of foreign takeover plans in the last three years, according to the source.