Germany blocks Cosco port logistics stake in Hamburg over security concerns

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Germany blocks Cosco Hamburg stake

Highlights

Germany's cabinet blocks Cosco's planned acquisition of Hamburg-based Zippel due to security concerns over deepening dependencies and supply chain resilience risks.
Berlin signals a broader policy shift by preparing stricter investment screening legislation and pushing for stronger EU trade instruments in response to Chinese economic pressure.
Germany's latest intervention contrasts with its 2022 decision allowing Cosco a 24.9% Tollerort stake, reflecting increased vigilance under Merz's government.

Security review and deal rationale

As reported by Financial Times, the cabinet approved the decision on Wednesday after reviewing Cosco’s planned acquisition of the medium-sized logistics company, which operates in Hamburg, Germany’s biggest North Sea port. A spokesperson for the economy ministry said the rejection is based on security concerns, adding that the takeover would deepen dependencies and jeopardise the resilience of German and EU supply chains.

The ministry says Zippel specialises in inland container transport and mainly links Germany’s largest port complex with the country’s eastern states. It also says Germany welcomes foreign investment, but the law allows authorities to assess transactions individually when a deal is likely to endanger public order or security.

Cosco and the Chinese embassy in Berlin do not respond to requests for comment in the source text. China’s foreign ministry does not immediately comment.

Broader policy shift on China exposure

The decision comes as Berlin prepares new legislation to tighten investment screening and reflects a firmer stance towards Beijing under Merz, who has been in office since May 2025. His government is trying to balance the need for foreign capital to revive Germany’s stagnant economy with stronger safeguards for critical infrastructure and economically sensitive supply chains.

The move also fits into a wider European debate over economic coercion and industrial pressure from China. Earlier this week, Merz and French President Emmanuel Macron propose that the EU adopt a stronger trade instrument, in a step widely seen as a response to Chinese restrictions last year on rare earths and magnets that disrupt some German car plants.

Germany’s latest intervention contrasts with its 2022 handling of another Cosco investment in Hamburg. At that time, the coalition led by former chancellor Olaf Scholz allowed Cosco to buy 24.9 per cent of the Tollerort container facility, below the 35 per cent stake originally sought, after ministries responsible for the economy, foreign affairs, defence and the interior raised security objections.

Our earlier article on South Africa’s Competition Commission challenging the Premier Group–RFG Holdings merger explained how the regulator sought to withdraw the deal’s conditional approval after plans emerged to shut RFG’s Tulbagh fruit-canning plant. The commission argued the closure plans were not properly disclosed during the approval process, raising public-interest concerns over more than 400 jobs and competition risks that could leave the domestic fruit-canning market effectively monopolised.

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