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Germany says not mulling state fund to fend off unwanted foreign investment

Reuters  |  BERLIN 

(Reuters) - denied a newspaper report on Wednesday that said the government was mulling the creation of a to buy company stakes and beat predatory Chinese and Gulf investors so that key technology remained in German hands.

was spooked by the takeover of robotics firm by China's in 2016 and the surprise purchase earlier this year of a 9.7 percent stake in by Chinese carmaker

German daily Zeitung (FAZ) reported that a move by German state development to buy a stake in high-50Hertz, preventing China's from acquiring it, could serve as a

"There are no considerations or plans in the to establish a 'sovereign wealth fund' with the aim of financing government stakes in companies," an Ministry said when asked to comment on the report.

"is open to foreign direct investment and supports the freedom of international capital flows," she said.

"Nevertheless, the is committed to the protection of Germany's security interests ...," the said, pointing to government plans to tighten rules for foreign direct investment in certain sectors.

Ministry sources said in August that was considering tighter controls on foreign investments, enabling to intervene if a buyer from outside the amasses a shareholding of at least 15 percent, compared with 25 percent now.

Without citing specific sources, FAZ reported that if the government rejected a foreign direct investment, a German could step in as an alternate buyer to avert a possible decline in market value.

Germany's and Ministries had already discussed with each other the idea of a sovereign wealth fund, which would need to be endowed with federal funds for purchasing stakes, it added.

(Reporting by and Rene Wagner; editing by and Alison Williams)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 12 2018. 16:04 IST