Germany blocks sale of logistics company to China's Cosco

Germany Blocks Sale of Logistics Firm Zippel to Cosco Over Security Concerns

Overview of the Blocked Acquisition

Government's Decision and Rationale

BERLIN, Oct 7 (Reuters) - The German government has blocked the sale of logistics firm Zippel to Chinese state-owned shipping group Cosco over security concerns, the economy ministry said on Wednesday.

"The acquisition would have deepened dependencies and jeopardised the resilience of Germany's and the EU's supply chains," the ministry said in a statement.

European Concerns Over Chinese Investments

European governments are increasingly wary of Chinese state-owned companies' investments in logistics and transport infrastructure, which they fear could provide access to sensitive supply chain information and create dependencies.

Regulatory and Business Reactions

Antitrust Authority's Position

Germany's antitrust authority cleared the Zippel deal in February, noting national security considerations fell outside its scope.

Details of the Proposed Deal

Cosco aimed to buy an 80% stake in Zippel, which specialises in transporting containers between seaports and inland destinations.

Responses from Involved Companies

Zippel's Statement

"We would have preferred a different outcome and continue to consider our business decision the right one," Zippel CEO Axel Plass said in a statement, adding that day-to-day operations will continue as before.

Cosco's Previous Investments

Cosco, which did not immediately reply to a request for comment, already has a minority stake in a Hamburg port-based container terminal after the previous German government gave the green light in 2023 despite strong disagreement within the coalition.

Reporting Credits

(Reporting by Holger Hansen and Thomas Seythal in Berlin, additional reporting by Tom Kaeckenhoff in Duesseldorf, editing by Linda Pasquini)