Chancellor Angela Merkel’s government plans to bring in new rules to protect German companies from takeovers by entities based outside the European Union.

The bill would enable the government to block deals that present “potential interference” to German interests, according to an official who spoke on condition of anonymity. At the moment, it can only prevent a takeover if it is seen as posing a security threat.

Authorities will also be able to restrict access to companies’ know-how while an acquisition is being reviewed.

Merkel’s cabinet aims to pass the changes to the Foreign Trade Law on Wednesday, the official said. The details were reported earlier by Funke media group.

As the coronavirus pandemic batters the global economy, officials have expressed concern that companies critical to German interests could become vulnerable to foreign takeovers. The euro area’s finance ministers are set to discuss proposals to mitigate the economic and financial fallout from the outbreak on Tuesday.

 

Source: Bloomberg

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