Germany blocks planned sale of VW's gas turbine business to China, sources say
Adds background in par 2,6,7
BERLIN, July 3 (Reuters) -Germany's cabinet blocked on Wednesday the planned sale of Volkswagen VOWG_p.DE subsidiary MAN Energy Solutions' gas turbine division to a Chinese company, two government sources said.
The decision comes as Germany and the European Union try to reduce risks from economic ties with China.
MAN Energy Solutions said last September that the German government would take a closer look at the planned sale to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT), which was first announced in June 2023 at an undisclosed price.
GHGT belongs to the China State Shipbuilding Corporation (CSSC), which dominates the Chinese shipbuilding industry.
Three people familiar with the matter had toldReuters on Tuesday that Germany would block the plans.
MAN Energy Solutions will wind down gas turbine development and production as a result of the blocked sale, one source had said, adding the group would keep the profitable turbine service business.
Germany's Economy Ministry has the right to critically review and block transactions with regard to their implications for national security.
Reporting by Andreas Rinke, writing by Madeline Chambers, editing by Thomas Seythal
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
