The federal government prohibits the takeover of a German satellite company by a Chinese company. According to government sources, the cabinet approved a decision by the Federal Ministry of Economics on Wednesday, which rejected the complete takeover of the satellite company Kleo Connect GmbH by its Chinese majority shareholder Shanghai Spacecom Satellite Technology (SSST) after an investment review. SSST already holds around 53 percent of the company, but wanted to acquire a further 45 percent of Kleo Connect from the German company Eighty-Leo.
Kleo Connect wants to place a global network of a total of 300 satellites in orbit – similar to Elon Musk’s Space This is now considered a strategically important area, as shown by the debate about the use of the Space X network in the war between Russia and Ukraine.
Since the Russian attack on Ukraine, excessive economic and technological dependence on countries like China has been debated, especially in areas of critical infrastructure. The rules for investment reviews have been tightened, especially in areas of critical infrastructure.
In May, after a tough struggle, the federal government approved the Chinese state shipping company Cosco’s entry into a container terminal owned by the Hamburg port operator HHLA with a share of less than 25 percent. The Chinese company had originally sought a 35 percent stake, but the cabinet had already rejected this in October.