BERLIN (Reuters) -Germany will block the planned sale of Volkswagen subsidiary MAN Energy Solutions’ gas turbine division to a Chinese company, three people familiar with the matter told Reuters on Tuesday.
The government is expected to rubber-stamp the decision at a cabinet meeting on Wednesday, the people said, declining to be named due to the sensitivity of the matter.
GHGT belongs to the China State Shipbuilding Corporation (CSSC), which dominates the Chinese shipbuilding industry.
MAN Energy Solutions said last September that the German government would take a closer look at the planned sale to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT), which was first announced in June 2023 at an undisclosed price.
MAN Energy Solutions will now wind down gas turbine development and production as a result of the blocked sale, one of the source said, adding the group would keep the profitable turbine service business.
A spokesperson for MAN Energy Solutions said the company would respect the government’s decision as soon as it was shared.
Germany’s Economy Ministry, which has the right to critically review and block transactions with regard to their implications for national security, declined to comment.
Volkswagen was not immediately available for comment.
(Reporting by Markus Wacket, Andreas Rinke and Victoria Waldersee; Writing by Christoph Steitz; editing by David Evans)
