Ankara:Germany prevented the Chinese state-owned shipping company Cosco from acquiring an 80% stake in the German logistics firm Zippel due to security concerns.

According to Anadolu Agency, the German Ministry of Economy and Energy announced that the cabinet made this decision during a meeting without holding a discussion. The ministry cited security concerns as the reason for the ban, expressing that the acquisition could deepen strategic dependencies and threaten the supply chain resilience of Germany and the European Union.

Germany, as Europe's largest economy, welcomes foreign investments but retains the authority to review acquisitions that might pose a threat to national security or public order under current legislation. The medium-sized logistics firm Zippel, with an annual turnover of £80 million ($89.4 million) and 210 employees, plays a significant role in connecting North Sea ports to industrial centers in eastern Germany through road container transport.

Despite its low overall market share due to its annual capacity of 175,000 containers, Zippel holds over a 35% share in the handling volume at the Berlin, Schkopau, and Elsterwerda terminals. One of its strategic functions includes providing direct logistics support to the German Armed Forces.

German media reported concerns that selling Zippel to Cosco could pose risks to logistics lines toward Germany's eastern border in the event of a military conflict, a crucial factor for the NATO defense alliance.