BERLIN (Reuters) - The German cabinet has granted itself the power to block a takeover of machine toolmaker Leifeld by a Chinese investor if necessary, a government source told Reuters on Wednesday.
Earlier, the company’s main owner had told Reuters that China’s Yantai had abandoned its pursuit of the company, anticipating that Berlin would wield a veto because of Leifeld’s involvement in the nuclear power business.
“The cabinet today decided to grant authorization for a veto,” the government source said. “This authorization allows for vetoing the purchase of a domestic company by a foreign company for security reasons.”
Reporting by Gernot Heller; Writing by Thomas Escritt; Editing by Michelle Martin