Germany approves China's Cosco taking stake in Hamburg port terminal (updated)

Hamburger Hafen und Logistik AG

10/05/2023 18:33

(Rewrites throughout, adds German government statement,
background on foreign ministry's review of deal)
       May 10 (Reuters) - Port logistics firm HHLA  HHFGn.DE 
said on Wednesday the German government has cleared the purchase
by China's Cosco  1199.HK  of a 24.9% stake in a container
terminal in the sea port of Hamburg, amid a political row over
Chinese investment in the German economy.
    A spokesperson for the German government said in a statement
that Berlin had informed HHLA and Cosco that their reworked deal
was compliant with a cabinet decision in the fall of last year
that limits the ownership of Chinese state firm Cosco in the
terminal to less than 25%.
    The deal was also in line with Berlin declaring the
terminal, known as Tollerort, as critical infrastructure this
year, the statement added.
    The clearance comes even after German economy ministry said
last month that it was reviewing a decision to allow Cosco to
take the stake.
    China's foreign ministry at the time urged Germany to be
"objective and rational" in its review.

 (Reporting by Nilutpal Timsina in Bengaluru and Ludwig Burger
in Frankfurt; Editing by Aurora Ellis)
 ((Nilutpal.Timsina@thomsonreuters.com; +91 86382 04706))