The German government plans to reduce the threshold at which it can screen acquisitions of stakes in German companies by non-European firms over national security concerns, Reuters wrote, citing German newspaper Handelsblatt.
Currently, the government can investigate foreign investments involving at least a 25% stake in a German company on national security grounds. Berlin plans to cut that stake threshold to 10%, Handelsblatt reportedly said, citing draft legislation it has seen. The government was previously reported in August to be eyeing a reduction in the threshold to 15%.
The move will help Germany address concerns of the risk posed by Chinese investment into strategically important companies, Reuters said. Chinese automobile manufacturer Geely Automobile Holdings Ltd. acquired a 9.69% stake in German automaker Daimler AG this year, among others.