Cosco on port deal compromise: “No guarantee that transaction will take place”

After the cabinet’s compromise on the port deal with Cosco, the Chinese shipping company expressed reservations: the decision and conditions still have to be checked. There is “no guarantee that the transaction will take place”.

The Chinese state shipping company Cosco has reacted cautiously to the restrictions imposed by the federal government on entering the operator of a terminal at the Port of Hamburg. The decision and the conditions have not yet been received and must be examined, it said in a published statement.

“The transaction is subject to the satisfaction or waiver of conditions precedent. There is no guarantee that the transaction will take place or when it can take place,” investors are warned. Cosco recalled that the purchase of 35 percent and not just 24.9 percent had actually been agreed with the logistics group HHLA.

Ministries wanted to ban business

The federal cabinet had previously decided on a so-called partial ban after weeks of debate. Accordingly, Cosco can only acquire a maximum share of 24.9 percent in the container terminal – instead of the planned 35 percent. The slimmed-down entry also no longer provides for a claim to a managing director position. Cosco should also be prohibited from being granted contractual veto rights in strategic business or personnel decisions.

However, many departments were in favor of a complete ban on the business. Federal Economics Minister Robert Habeck and other federal ministers had warned of new dependencies, particularly after experiences with gas supplies from Russia.

Scholz rejects criticism

Chancellor Olaf Scholz had criticism of the decision to enter China rejected. When asked why he ignored warnings from specialist departments, a government spokeswoman said the chancellor had made it clear that the sale of the port was not at stake, but “only” a stake in a single terminal.

The relatively small stake does not open up any strategic influence for the Chinese company. Scholz is aware of the dimension of the decision. A stake of 24.9 percent does not create any strategic dependency in the balance, according to the spokeswoman. The decision has nothing to do with the Chancellor’s upcoming trip to China.

HHLA: Sales agreement will be adjusted “promptly”.

The Hamburg port company HHLA also rejected this criticism. “The cooperation between HHLA and Cosco does not create any one-sided dependencies,” explained CEO Angela Titzrath. HHLA will remain an independent, listed company with the Hanseatic City of Hamburg as its most important shareholder.

At the same time, Titzrath emphasized the economic importance of the cooperation with Cosco for her company. The entry of the Chinese company strengthens the “future viability of HHLA” and secure jobs in the Port of Hamburg. Both groups would now be in “prompt” talks about a “appropriate adjustment” to their sales agreement.

Since Cosco is a non-EU company, the deal that was initiated between the two companies a good year ago was subject to the federal government’s investment approval. If the cabinet had not decided this week, the sale would have been automatically approved as originally agreed between Cosco and HHLA.

China welcomes cabinet decision

In a first reaction to the decision, China underlined the advantages for both sides and welcomed Berlin’s approval for entry. A spokesman for the Chinese Foreign Ministry warned against unfounded speculation in this context. It is hoped that cooperation between Germany and China will be considered rationally.

Beijing repeatedly emphasizes joint cooperation, although it has been sealing itself off for several years and making market access more difficult for European companies. At the same time, China is investing massively in infrastructure abroad. The country already has its own terminals in 14 European ports or holds shares in port operators.