Germany blocks VW’s gas turbine sale to China

Germany’s cabinet has intervened to block the sale of Volkswagen subsidiary MAN Energy Solutions’ gas turbine division to a Chinese company, citing national security concerns amid broader economic tensions with China.

The decision, confirmed by two government sources on Wednesday, follows scrutiny initiated last September when MAN Energy Solutions announced plans to sell its gas turbine division to Chinese state-owned CSIC Longjiang GH Gas Turbine Co.

The deal, disclosed in June 2023 at an undisclosed price, drew attention due to CSIC’s affiliation with the China State Shipbuilding Corporation (CSSC), a key player in China’s shipbuilding sector.

According to sources cited by Reuters, Germany’s move to block the sale means MAN Energy Solutions will cease gas turbine development and production, while maintaining its profitable turbine service business.

Under German regulations, the economy ministry holds authority to review and veto transactions perceived to impact national security.

Attribution: Reuters.

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