Germany to Block Cosco's Acquisition of Logistics Firm Zippel on Security Grounds

The German government intends to block the planned acquisition of logistics firm Zippel by Chinese state-owned shipping company Cosco due to national security concerns. The move reflects a hardening stance in Europe regarding Chinese investment in critical infrastructure.

The Proposed Acquisition

China's state-owned Cosco (SS:601919) was seeking to purchase an 80% stake in the Hamburg-based Zippel, a company specializing in moving shipping containers between seaports and inland destinations. The planned veto was first reported by the German newspaper Handelsblatt, which cited a government memo marked "for official use only."

According to the report, the memo warned that the deal could create strategic dependencies that China might exploit during political conflicts. The German economy ministry's investment review reportedly focused on Zippel's software systems and its processing of potentially sensitive supply chain data.

National Security Review

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While Germany’s antitrust authority had approved the transaction in February, it noted that national security issues were not part of its assessment. The government's foreign investment screening process is a separate review designed to protect critical infrastructure and national interests.

This increased scrutiny follows a contentious 2023 decision where the German government approved Cosco's purchase of a minority stake in a Hamburg port container terminal, despite strong opposition from within the ruling coalition. European governments have become increasingly cautious about allowing state-owned Chinese enterprises to gain control over key logistical assets.

Company Responses

Both the German economy ministry and Zippel did not respond to requests for comment on the matter, according to the source report. A Germany-based spokesperson for Cosco stated that the company could not comment until it receives a final, official decision from Berlin.