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Germany approves new powers to block foreign takeovers in healthcare

Christian Fernsby ▼ | May 20, 2020
Germany gave itself new powers to veto hostile foreign takeover bids for healthcare companies Wednesday, a measure designed to ensure a continuous supply of essential products during the coronavirus crisis.
Germany hospital
Block   Germany hospital
The regulation, approved by the cabinet, will allow the government to block takeovers of makers of vaccines, precursor chemicals, medicines, protective equipment or medical machinery such as ventilators.

Topics: Germany

The measure comes after the early stages of the coronavirus saw a worldwide run on materials believed crucial to combat COVID-19 - the respiratory disease caused by the new virus - including reported attempts by the United States government to buy Curevac, a pharmaceuticals start-up that was working to develop a vaccine against the disease.

In future, the government will be allowed to examine the security implications of a bid from outside the European Union as soon as the buyer holds more than 10% of the healthcare company’s shares. Now, the threshold is 25%.