Germany to block Cosco’s purchase of logistics firm Zippel

Germany has decided to block Chinese shipping company Cosco's attempt to acquire an 80% stake in Hamburg-based logistics firm Zippel, citing security concerns, according to Handelsblatt newspaper. Cosco plans to expand its influence in the logistics sector by purchasing a majority share in the company, which specializes in moving containers between seaports and inland locations.

The German government reportedly received a confidential memo for official use, warning of potential strategic dependencies that could be exploited during political conflicts. European governments have become increasingly wary of Chinese state-owned companies investing in logistics and transport infrastructure due to the potential risks involved.

The German economy ministry and Zippel have declined to comment on the matter. A spokesperson for Cosco did not respond to requests for comment, stating that they could not provide any information until they receive a final decision from Berlin. Germany's antitrust authority had previously approved the deal in February, but national security issues were not part of its review.

In June, Zippel's managing director, Axel Plass, revealed that the economy ministry's investment review focused partly on the company's software systems and whether it processes sensitive data. Cosco had already acquired a minority stake in a Hamburg port container terminal earlier this year, following the previous German government's approval in 2023 despite significant opposition within the coalition.