The German Economics Ministry has blocked COSCO’s acquisition of Zippel Group

(Deutsche Welle Chinese website) Germany's Federal Ministry of Economic Affairs stated that it blocked COSCO Shipping's acquisition of Zippel Group due to security concerns. According to the government's assessment, the sale of Zippel Group to COSCO Shipping Lines will not only deepen Germany and the EU's dependence on China, but also have a negative impact on the stability of the supply chain.

At the end of September this year, Germany's Handelsblatt reported that the government had "major security concerns" about the merger.

According to reports at the time, COSCO Shipping Lines, the world's fourth largest shipping company, planned to acquire 80% of Zippel's shares. Zippel is mainly engaged in the sea-land intermodal transportation business, connecting inland trucking and rail transportation with ocean-going freighters. Cargo is shipped mainly from North Sea ports to eastern Germany. Although its market share is small, its business is concentrated in eastern Germany. It is this geographical business layout that triggered Berlin's opposition to the acquisition.

Additionally, the government's concerns relate to logistical support for the Bundeswehr. In the event of a military conflict, logistics to Germany's eastern border will be crucial to NATO operations.

Axel Plaß, general manager of Zippel, said he understood the government's decision. He said, "We hope for another outcome, and we still believe that our business decision is correct." He said that daily operations will continue as usual, and the interests of customers and employees will not be affected in any way.

Cosco did not immediately respond to a Reuters request for comment. COSCO Shipping holds just under 25% of the Hamburg Tollerot container terminal, which is operated by Hamburg Port & Logistics AG (HHLA). It was only after a long game that the German government approved the Chinese company's stake in May 2023 and set limits on COSCO Shipping's participation.