August 1, 2018 / 9:38 AM / 17 days ago

Germany prepared to veto Chinese bid for Leifeld - government source

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 authorisation for a veto,” the government source said. “This authorisation 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

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