The German government said today it took a minority stake in electricity transmission firm 50Hertz for "national security" reasons, thwarting Chinese investors from buying into the strategic company.
"On national security grounds, the federal government has a major interest in protecting critical energy infrastructure," the finance and economy ministries said in a joint statement.
Berlin has therefore tasked a public bank to purchase a 20-per cent stake put up for sale by Australian infrastructure fund IFM and which has been sought by China's State Grid.
The Chinese group had already tried to take a minority stake in the company earlier this year.
But their first attempt was blocked as 50Hertz's majority shareholder -- Belgian power transmission system operator Elia -- snapped up the stake and expanded its holdings to 80 per cent.
Chinese companies have been going on a shopping spree across Europe, snapping up airports, harbours and engineering firms. They have also made several high-profile acquisitions of German high-tech firms, a trend that has been viewed skeptically by Berlin.
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Germany's coveted automobile industry is also not spared from Chinese interest, with Geely shocking the sector when it took almost 10 per cent in Daimler, which owns the Mercedes brand.
A study by consultancy EY found Chinese companies bought 54 German firms last year and invested USD 13.7 billion in Europe's largest economy.
Underlining concerns over the spate of Chinese acquisitions, domestic intelligence chief Hans-Georg Maassen had said in May that "one won't need to spy if one simply buys up entire companies."
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