The German cabinet will approve on Aug. 20 a draft law that will give the government a veto right over foreign companies' acquisitions of more than 25% shareholdings in a German company, Financial Times Deutschland said, citing sources.
It said the law is planned to be effective this year. The veto right is for acquisitions by foreign investors who are not based in the EU and who are acquiring more than 25% voting rights in a German company directly or indirectly.
The veto right applies if public security and public order are put at risk, it added.
The report said the government has been concerned about the possibility that key German companies could fall in the hands of foreign investors, such as sovereign wealth funds who may be pursuing not only business interests but also political considerations.
Source: Thomson Merger News