Germany intends to block sale of logistics firm to China's Cosco, newspaper reports

Germany Expected to Block Cosco's Acquisition of Zippel Over Security Concerns

Overview of the Cosco-Zippel Acquisition and Security Implications

Background of the Proposed Acquisition

BERLIN, Sept 29 (Reuters) - The German government intends to block the sale of logistics firm Zippel to Chinese state-owned group Cosco over security concerns, the Handelsblatt newspaper reported on Tuesday, citing a government memo.

The major Chinese shipping company aims to acquire an 80% stake in Hamburg-based Zippel, which specialises in transporting containers between seaports and inland destinations.

Government Concerns and Strategic Dependencies

Handelsblatt cited the memo, classified "for official use only," as warning that resulting strategic dependencies could be used as leverage in the event of political upheavals. 

European Response to 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.

Reactions from Stakeholders

Zippel's Response

"We have taken note of the decision. Our business operations will continue as normal," a spokesperson for Zippel said, declining to elaborate further.

German Government's Position

Germany's Economy Ministry said it was reviewing the transaction as part of a foreign investment screening process.

Cosco's Statement

A Germany-based Cosco spokesperson said the company could not comment until it received a final decision from Berlin. 

Regulatory and Security Review

Antitrust Authority Decision

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

Focus on Software and Sensitive Data

In a June interview with industry publication DVV, Zippel managing director Axel Plass said the economy ministry's ongoing investment review was focused in part on the company's software systems and whether it handled sensitive data. 

Previous Cosco Investments in Germany

Cosco 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 by Miranda Murray and Elke Ahlswede; Writing by Christoph Steitz; Editing by Tom Hogue and Thomas Seythal)