Germany won't obstruct Kuka takeover by China's Midea

AP News
Posted: Aug 17, 2016 10:16 AM

BERLIN (AP) — The German government is making clear that it won't obstruct the planned takeover of industrial robot maker Kuka by Chinese appliance maker Midea.

Midea's move is part of a wave of Chinese investments overseas but it also raised misgivings among some in Germany about foreign takeovers of local companies. Midea, which has now secured some 95 percent of Kuka's shares, has promised that Kuka will remain independent.

The German government can open a formal examination of whether a proposed deal poses security or other risks if an investor from outside the European Union acquires 25 percent or more of a German company. It can then forbid a deal or impose conditions.

However, Economy Ministry spokesman Andreas Audretsch said Wednesday that it's decided against such an examination.