China State Shipbuilding Corporation Looks to Acquire German Ship Equipment Manufacturer that Supplies the German Navy

On October 11, reports emerged that state-owned, China State Shipbuilding Corporation (CSSC) is positioned to acquire 300-year old German ship equipment manufacturer, Rheinhold & Mahla (R&M), from the company’s current majority shareholder, Deutsche Beteillgungs AG. CSSC has reportedly filed to receive approval from Germany’s competition regulator.

Notably, R&M supplies components to cruise liners, as well as the Germany Navy. Media reports suggest, however, that R&M’s role in the German defense sector is not foreseen as a potential impediment to the acquisition. It remains unclear if and why this is the case.

In recent years, the German government has taken steps to fortify its foreign investment review regulations, a move that has largely been seen as a response to increasing Chinese investment in strategic German sectors.