KfW takes 20% stake in 50Hertz

Germany is increasing its efforts to prevent companies in critical industries from falling into Chinese ownership. German development bank KfW has agreed to take a 20% stake in high-voltage energy network operator 50Hertz, fending off an offer from China’s state grid.

Berlin also plans to veto the planned sale to Chinese investors of Leifeld Metal Spinning, customers of which include companies in the aerospace, chemicals and automotive industries, according to a government source familiar with the matter. The measures come amid concerns in some countries that China and other rivals are gaining access to key technologies via takeovers.