© Stocksak. FILE PHOTO – Containers belonging to Chinese companies China Shipping Company and COSCO (China Ocean Shipping Company), are loaded onto a container that is leaving Hamburg, Germany on March 11, 2020. REUTERS/Fabian Bimmer
BERLIN (Stocksak). Germany’s ruling coalition may allow China’s Cosco to acquire a smaller stake at a Hamburg port terminal than originally planned. Sources told Stocksak that this was a compromise that would allow the deal to proceed.
Last year, shipping giant Cosco offered to buy a 35% stake at one of logistics firm HHLA’s three terminals in Germany’s largest port in Hamburg. However, the German coalition is divided over whether or not to approve the deal.
Berlin would approve the sale of 24.9% terminal to Cosco as part of the compromise. However sources indicated that Germany’s economic and foreign ministries were against the deal, even with the modified terms.
The coalition’s handling of the matter is seen to be a measure of Germany’s willingness to take a tougher stance against China, its top trading partner. This is due to concerns about becoming too dependent on China.
Sources said that negotiations had not been concluded. This news comes one week before Olaf Scholz, German Chancellor, is due to travel in China.
China.Table was the China.Table report. It had reported Monday that Cosco might reach a deal for a smaller share, citing sources close by the negotiations.