Germany Opposes China’s Investment In its Electricity Network
Germany Opposes China’s Investment In its Electricity Network; German Chancellor Angela Merkel’s government has expressed strong opposition to China’s entry into its electric grid, fearing that Beijing could have a major impact on Germany’s vital electricity sector, German weekly Der Spiegel reported on Saturday.
The concerns were expressed by the German government after the Beijing-based Chinese government-owned Beijing-based network asked for a 20% stake in the company’s 50th shareholding in Berlin, the magazine said.
The Foreign Economy Act gives the German government the right to prevent the participation of foreign companies with a share of more than 25% of the total value of the shares of any strategic company in the country.
As shares that the Chinese state-owned company wants to buy are less than a quarter of the total value of Hertz 50, the German authorities are considering inviting the Belgian energy group Elia to increase its current stake of 60% in Hertz 50, according to Der Spiegel.
The Australian investment fund, the owner of the remaining 40% of the shares of the Berlin Electricity Company, offered the entire stake for sale. Der Spiegel explained that the Belgian energy group has a preferential position to buy this share and acquire the company “Hertz 50” as the majority shareholder.
The German magazine concluded that Merkel’s government is considering the use of Belgium’s Elia Group for sensing that there is a risk that China will have a major impact on the electricity grid, which is a vital sector in Germany.