BERLIN: Germany will block the planned sale of Volkswagen subsidiary MAN Energy Solutions‘ gas turbine division to a Chinese company, two government sources familiar with the matter told Reuters on Tuesday.
The government is expected to rubber-stamp the decision at a cabinet meeting on Wednesday, the people said, declining to be named due to the sensitivity of the matter.
GHGT belongs to the China State Shipbuilding Corporation (CSSC), which dominates the Chinese shipbuilding industry.
MAN Energy Solutions said last September that the German government would take a closer look at the planned sale to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT), which was first announced in June 2023 at an undisclosed price.
Germany’s Economy Ministry, which has the right to critically review and block transactions with regard to their implications for national security, declined to comment.
Volkswagen and MAN Energy Solutions were not immediately available for comment. (Reporting by Markus Wacket and Andreas Rinke; Additional reporting by Victoria Waldersee; Writing by Christoph Steitz; editing by David Evans)
