Protectionism Returns: Germany Seeks To End "Unwanted Foreign Takeovers" Of Local Companies

Tyler Durden's picture

Many have said that if Trump wins the presidency, a new ice age of global trade protectionism may be upon us. Well, some may be taking steps to preempt that and are already launching various protectionist measures in response to rising populist anger.

Just a few months after the US Treasury unveiled new anti-tax inversion rules, which were meant to kill the Pfizer-Allergan deal, but according to many may have launched a new wave of global deal  protectionism, overnight Germany appears to have retaliated in kind when according to Welt am Sonntag, Angela Merkel's government was exploring options to limit any purchase of more than a 25% stake in German companies.

As Reuters adds, the German Economy Ministry wants to protect high tech companies in Germany from unwanted takeovers, especially from state-owned and partly state-owned companies in non-European countries. Welt am Sonntag (WamS) said Deputy Economy Minister Matthias Machnig had in the past week sent to members of the German government a paper containing six key points for reviewing investment at the European Union level. The paper foresees wide-reaching rights for the EU and national governments to prohibit company acquisitions by investors in non-EU countries, the newspaper said.

In other words, global M&A as a means of laundering hot money, either of central banking of Chinese origin, is about to slam shut, leading not to a plunge in global ibanking M&A fees, but also forcing the cash to stay "local" and leading to even greater asset bubbles, especially in China.

The issue of foreign takeovers has come to the fore in Germany with Chinese home appliance maker Midea buying German robot maker Kuka and Chinese chipmaker Sanan Optoelectronics saying on Monday it had been in contact with German lighting group Osram about a potential acquisition or cooperation deal.

Asked about the newspaper report, a spokesman for the Economy Ministry said he would not comment on internal government working papers.

"Minister (Sigmar) Gabriel has, however, repeatedly made clear that he would like to sound out options - also at the European level - to make fair competition possible, especially in international competition with state-subsidized foreign companies, and at the same time to remain open for investment," the spokesman said.

At this rate Trump won't even need to win the presidency for the world to undo on its own some 70 years of post World War II "globalization."

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FireBrander's picture

Print money from thin air (in China), use that "money" to buy real assets in other countries.

How brilliant is that...create digital money, then use it to buy real things in other countries...and the other countries willingly participate because it'a all they've got to keep thier dead economies "growing"....priceless.


Future Jim's picture

I wonder if Germans regret letting the NWO disarm them yet ...

FatTony7915726's picture

Can you say PARADOX? Sure you can!!!  Foreign takeover of companies BAD, foreigners from muslim countires GOOD.  FUCK YOU!

38BWD22's picture



Any rational leader in The West would not want their country's high-tech company gems taken over by China.

Extreme vetting of Chinese investors.

Extreme vetting of Muslim rapefugees.


max2205's picture

But Bayer can buy $mon ?

Bokkenrijder's picture

But but but, I thought that those 'rapefugees' were all "highly skilled workers?"

Oh the irony: when foreigners flood Europe and become a stress on the middle and lower classes they call it "cultural enrichment," but when they take away the dividend payments and power of the ruling elite, then The Establishment cries foul!

HowdyDoody's picture

Mikel Merkel is still ordering other EU countries to increase sanctions on Russia.

The RUssian position is that such sanctions harm Europe more than they do Russia.

This being is single-handled destroying Germany and Europe.




filmmaker's picture
filmmaker (not verified) HowdyDoody Oct 16, 2016 4:45 PM

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do...

Fireman's picture

What do you think that the USSAN, Britlander and EUSSR "economies" are built on?

Fiat filth, backed by global slaughter.

FireBrander's picture

"Death Toll From War in Syria Now 470,000, Group Finds"


 “Your word is your bond....and Barack Obama and I set out to build lives guided by these values, and pass them on to the next generations....Because we want our children, and all children in this nation, to know that the only limit to the height of your" FAILURES, is the level of your arrogance, corruption, evilness and psychopathy.

FireBrander's picture

Imagine, if, over a period of 5 years, ONE of Trumps "decisions" (regime change in Syria) resulted in the death of 470,000+ innocent people...MOST OF THEM MUSLIMS...just imagine that in the MSM...

Day after day the front page news would be pics of dead children stacked like firewood..but not for Obama, nope...470,000+ dead, majority being Muslims, and the "news" about Syria is the "atrocities" committed by Russia.

To Hell In A Handbasket's picture

Are you telling me you just noticed the biases in the USSA media? Many of you fuckwits always blamed the left leaning media, without realising Fox News was just as bad. Even Brietbart has joined the dark-side to varying degrees. Disgusting and biased media coverage is not exclusive to Obama and if Trump did the same in Syria, he would not be castigated in the news for it. Did Bush Jr not get the easiest fucking ride from the right wing press? This Syria war/anti-Russia stance serves interests far fucking bigger than Obama. Obama serves a different pay master than the USSA electorate.

Obama is a Muzzie himself, has killed quite a few Muzzies on his presidential watch, but will still serve the agenda of his paymsters. Every president post JFK is a fucking pussy. The only ones post JFK, who had a semblance of balls was Carter and Regan. The rest were cowards, who kept quiet, obeyed orders and got rewarded in Blood Shekels post presidential career.

Erek's picture

"Minister (Sigmar) Gabriel has, however, repeatedly made clear that he would like to sound out options..."

That fat fuckwad will sound out options that only benifit him and his cronies.

Donald J. Trump's picture

I've been bitching about that for years.  Smartest people in the room never see it coming, or their money goggles just blind them..

Offthebeach's picture



Intelligent Yet Idiots

MEFOBILLS's picture

This is why a floating exchange rate is .....craaaazy.  It is money trading for money.  Money in this alice in wonderland universe we now have, is hypothecated into existence based on "assets."  In the case of China they can create new Yuans in their State Banks, which gives them strategic advantage in the exchange rate game.

For example, now that the U.S. is doing QE to hold bond prices high, that gives China room to maneuver and buy actual 'real' things around the world instead of U.S. debt instruments.  Excess dollars and other currencies won in China imbalanced trade can be recycled back out to buy up technology and strategic positions in other countries.

Money should never trade for money.  Money is a device used to trade for GOODS and SERVICES.  Money divides down at moment of transaction, to then allow a goods trade to go forth.  

Also, one country's money used worldwide (dollar) to trade amongst other countries is........craaazy.   All foreign trade is ONLY BARTER.   Countries trade goods with each other and sometime services.  Ergo.  An accounting device to allow balanced goods exchange is required for countries to trade amongst themselves.  The best device ever invented for forcing balanced foreign trade is the bancor.  This is not money, but an accounting device. (Of course, the usual suspects stopped the bancor... (((Dexter White and Henry Morganthau))))  When the usual suspects are involved, you know it is a bad thing for humanity, but good for the tribe.

Money is a legal vehicle created by law, and said law emanates from a sovereign people, so they can trade among themselves.  There is no international law, or an international money.  International law and international money would imply a NEW WORLD ORDER of international  crazies.  A proper international order is of trading nations using a bancor, and or working out long term infrastructure deals.  Infrastructure credit can be done with a trading bank, something like what Schacht did in Germany.  

We are driven to this international illuminist order all because humans are too ignorant to understand the true law nature of money and that all foreign trade is only barter.

All money is law, and it is fiat.  Even gold that erupts from the ground is fiat.  As soon as it aquires a stamp, it becomes money ...  a legal device.

The crux of the matter is not the thin air part, but how money is deployed and where it is allowed to circulate, and of course its volume relative to goods and services. A nations money should not trade for another nations money.  That is something like dueling law - an oxymoron.

If there is an exchange rate converter, it needs to be predicated on balance of trade as signaled by bancor flows.  A nations money should have an exchange rate relative to bancor which in turn relates to trade flows.  This then prevents the monkey business we see going on today in Wonderland.  Way to go Dexter and Henry are the mensch.

Of course no economist will mention these facts....because from day one in college, their usury funded brainwashing began.

Escrava Isaura's picture

MEFOBILLS: Of course no economist will mention these facts....because from day one in college, their usury funded brainwashing began.

Then, how can you explain what happen here, at this blog. Are the Hedgers that brainwashed an ignorant of how money should be treated?

Also, how do you intend to overcome all the false dialects and propagandas that’s rampant in this society?


MEFOBILLS's picture

Hudson calls it Junk Economics, and will have a book out soon.

There are three ways:

1) Education and point out monetary history.  ZH denizens are a tiny fraction of the population.  Not all economists are drones.  You mentioned a good one earlier with Werner.  But for the most part, economists are paid shills and don't go off the plantation.

2) Create a new voluntary (alternate) money system

the problem with a voluntary money system is that it is not law, but instead high agreement.  Hence it is as odds with itself.   It is also primarily credit based and it is not good to have your money supply constantly disappearing credit.

3) War, to then reset the debts.


Deplorable's picture

I tell my kids to bone up on their Chinese.

UnschooledAustrianEconomist's picture

The Chinese are fucked same as the rest of us.

I Feel a little Qeasy's picture

Print money from thin air (USA), use that "money" to steal real assets and goods from other countries. If they don't like it, bomb them.

FIFY, you're welcome, arshole.

LetThemEatRand's picture

Anti-globalism is gaining some traction, for good reason.  "Protectionism" is a term that unfairly paints protecting national interests in a negative light.

Escrava Isaura's picture

Merkel refuses to back Deutsche Bank against USA. But has backed DB always against the community banks. Who’s her master?


FireBrander's picture

Yeah, it is amazing to watch the USA let Wells Fargo off the hook with a handslap while, literally, trying to shut down the largest bank in Germany...and the German government stands by and watches it happen.

It's just like Syria, America is "Leading" and the EU WILLINGLY, almost happily, bears all of the negative consequences of the USA's failed attempt at Syrian "regime change".

French President to his people....You're just going to have to get use to being blown up and run over with trucks by our new guests.

RaceToTheBottom's picture

DB deserves to be broken up for being so stupid to buy all the derivatives of US MBS.  All of the US Banksters were laughing at them and dumping all that crap on the DB Douschers.

They all deserve to die but DB will be the Lehman of this crisis cycle.

They all know they don't need to do the right thing, just do a little "righter" than the company behind them....

Not saying Nationalism isn't there as well, but what were they expecting, a free market?


MEFOBILLS's picture

Not trying to be snarky, but the truck thing was a false flag.


It is easy to dupe Muslim youth into being agents.  1) Their psychopathic religion allows it  2) They are typically young men, who want some pussy and to start a family.  3) Since being denied family formation or a reasonable existence - they can be radicalized.  

It is Kabala and Illuminist money powers, in conjunction with oligarchic fellow travelers.  The head of the pyramid is where you need to look.  These people are funded by international flows ... see my previous comment about sovereign trading.  Their game is to harness usury flows out of private credit banking.  The other part of the game is uneven swaps - swapping nothing for something.  Often the game includes converting something real to become worthless in monetary terms (for example peso devaluations) to then buy it up later.

QE is something from nothing, to then buy up debt instruments.  Said instruments are held in the finance casino, which is not the real economy of workers and producers.

Money power today is not sovereign, nor is it lawful.  It therefore has no opportunity to be moral.

Escrava Isaura's picture

C’mon MEFOBILLS. You ought to know better than that.

Or maybe you don’t about these issues.

Most car accidents, unless a person’s face and hands hit the body of the or the windshield of the car as that person’s body is thrown over the car, unlikely you’ll see blood on the car. In the truck case, it’s almost impossible, unless if the body gets trap in the truck.

The clothes absorbs most of the blood. And the ground some, of course.


Also, go ask the relatives of Sean Copeland and his 11-year-old son, Brodie from Austin, Texas that were killed in Nice. Did these father and son fake their death?


I hold you to a higher standard Mefobills.



MEFOBILLS's picture


When an animal hits a truck it splatters blood all over.  Also, "meat" gets caught up in the grill.  If the tire runs over the animal, there is evidence left behind, including tire tracks.  Humans have quite a bit of blood in their body, 7% by body weight.  At high impact speeds hydrostatic forces cause the body to explode, creating a splatter tell-tale.  The front of this truck is square, so it should have caught splatter.  There should be human meat in the suspension parts and in tire grooves ....none of that.

Also, video of the truck is sped up as is evident from the people racing behind it at inhuman speeds.  Video was doctored to create a false narrative.

Something smells.  Actual evidence is out of alignment with reality.

Appreciate the vote of confidence though.  I don't claim to be perfect.

I cannot say about the Austinites, false flags can have many actors.  We can only observe with the evidence we are given.

False flags also quickly terminate the "actors" so we cannot interrogate them, as was the driver.




Escrava Isaura's picture

Metabolism in animals are different because they use their blood to regulate, and adjust with the temperature. Also, animals don’t wear clothes, which sucks great part of the blood.

The pictures on the truck are not close enough to see the damage and blood, not that I expect to see much of either, because most people were hit from the back.


Anyway, we are going to learn to disagree here.


bugs_'s picture

i think it is very wise to prevent a foreign takeover of DB

brada1013567's picture

The Germans would let just about anybody takeover/bailout Douchebank.

FireBrander's picture

The only sucker left for DB is the ECB...if the ECB won't buy DB, no one's a dead bank...slight smell that can be tolerated so they pretend it's alive...but eventually the smell, flies, and maggots will be too much and they'll have to bury it.

cognitive dissident's picture

well, I'd love to witness the rumor regarding the Chinese coveting of DBAG's gold derivative book become reality, where DB is forced to decide between insolvency and a wipeout of shareholder equity OR selling their only valuable asset, their collection of spinning plates that the Chinks secretly intend on smashng to the ground, ushering in the SGE as the new and only game in town, fucking the West and the Comex in one stroke and all of the counterparties on the hook for naked gold futures....

Fireman's picture

Does that mean that the perverse and prurient Bayer Monsanto copulation is on hold?

cognitive dissident's picture

hey Krauts -- be glad foreign entities seek voting interests in your companies at all, and just remember that "poison pills" and their use didn't die along with Goehring and the other all stars. What -- don't your typical board members possess the ability or conscience to vote down even a generous takeout offer? Whose idea was it to reunite E. & W. again?

FireBrander's picture

Won't the Execs/Board do what is best for the long term health of the firm?

If the Execs/Board (whom are the smartest of the smart and EXTREMELY well compensated for thier brilliance) want to sell the company to China, isn't that what's best in the long run?

Doesn't Capitalism work best when there are NO restrictions from Government?

This is all very confusing.

cognitive dissident's picture

the only part of DBAG's rotting, fetid portfolio that still has any "real" value is their gold derivatives book, and yes, the Chinese would love to coerce DBAG's board of sheiss-munchers to honor a potential bid for it... is that what you are referrig to? Because such a decision might recapitalize DB for a time but really be the bait that hooks Europe and the West indefiitely imo.  

General Titus's picture

The rise of communist China into the super polluter and economic powerhouse (and the US decline) can be leaid squarely at the feet of the Clinton administration, DemocRat campaign finance committee, and their Globalist Liberal NeoKon Komrades.  Remember ChinaGate?  Thats what Clinton should have been impeached for, and should have taken down his whole administration and the DemocRat Campaign Finance Committee


To Hell In A Handbasket's picture

Believe me, there is nothing wrong with some protectionism. National parks, prized beauty spots, natural harbours already in state/public hands, should NEVER be sold off, under some basket case IMF/World Bank/Chicago School bullshit dogma. The Chinese are buying prized assets from printed fucking paper and idiotic group think 3rd world and developing nations are accepting it, because the fucking IMF/World Bank, told them to do so.

The Chinese state in tandem with some of China's version of oligarchs are buying prized hi-tech assets in the west. Years of development, intellectual property rights and copyright, is sold in the blink of an eye to the Chinese and thus what would have taken years if not decades to catch up, was a bank transfer and technology transfer to be on par, happens just like that. We are fools to allow so much technology to be transferred. Then again, money and the needs of the shareholder is king.

ShakenNotStirred's picture

And when the times comes, with all that technology, China will be able to improve their military to the point that EU and US can do nothing against, and then is when everyone is REALLY f**ed. The stakeholder should better take notice, China will not remember, or will not care who gave them the tech, so the stakeholders will have no place to hide either.

MEFOBILLS's picture

Believe me, there is nothing wrong with some protectionism. National parks, prized beauty spots, natural harbours already in state/public hands, should NEVER be sold off


When I first waded into zero hedge, and espoused ideas like this, I was attacked without mercy by the libertarian-tard gold bug Austrian crowd.

Good to see the population here getting a clue.

The plain fact of the matter is that there are different kinds of markets, and that markets ARE NOT PERFECT predictors of price.  Prices are a function of money, especially money volume/velocity and exchange rates.

Selling off your patrimony to gain today is ignoring both past and future.  Time doesn't enter a double entry ledger, so money managers pretend it doesn't exist.  Patrimony is something previous generations labored for and handed down, hopefully to their children.  When it is monetized for today, so a few money masters can live large, then it is a generational crime.

The U.S. Wall Street Crowd, has monetized U.S. patrimony by sending industry to China for wage arbitrage.  This creates a finance oligarchy in the U.S., now evident in their moves to consolidate their gains.  

Parks and Ports and natrual monopolies BELONG TO THE PEOPLE, and hence their sovereign government.  Almost always, natural monopolies are INELASTIC MARKETS.  Inelastic markets must be government owned or regulated - that is just a fact, so deal.

Yes, I'm yelling by using caps.

The zero hedge crowed used to think that all markets were elastic and had perfect price competiton.  What a bunch of maroons, and I don't mean the color.

China has its willing fellow traveler agents around the world that will do deals with them, selling off their countries patrimony.  You don't have to be a (((tribe))) member to be morally corrupted and greedy.  Often people just think that to get rich is glorious, no matter how.

China bears watching... they are an important country to the world, for good or bad.  Many Chinese economists got miseducated in the U.S., learning neo-liberal Chicago School monetary orthodoxy.

chosen's picture

Yeah, there really is no pure capitalism.  The US is a corporate welfare state, exactly like socialism, but just for the wealthy.  There are no free markets (if there ever were) because the Fed has eliminated price discovery.  BTW, you make a mistake by characterizing all ZHers as of one mind-set. 

MEFOBILLS's picture

Yes you are right.. sorry.  I'm suggesting that some ZH denizens are evolving.  

Aubiekong's picture

We would be smart to do the same....

Malus's picture

Little late now. Same thing in the States and Canada. Our countries are being sold out from under our noses. And the same politicians that allowed it to happen are now crying foul? We are being screwed. All hail the NWO......

chosen's picture

Especially the housing market.  I remember when the japs did the same thing with our commercial real estate market, only to have the commercial real estate market collapse on them.  I hope the same thing happens to the chinks.

slammin_dude's picture

"Protectionism & Nationalism" are only dirty words because the faggot cultural marxists have brainwashed people into thinking that....

Batman11's picture

Protectionism does seem almost inevitable.

1920s/2000s - high inequality, high banker pay, low regulation, low taxes for the wealthy, robber barons (CEOs), reckless bankers, globalisation phase

1929/2008 - Wall Street crash

1930s/2010s - Global recession, currency wars, rising nationalism and extremism

Though that could be the least of our problems.

1940s - global war


Joe A's picture

Cause Germany does not want what German companies did to other companies abroad: buy them up, take their patents and let the place go bust, for instance as they did with Fokker.

Heavenlysunshine's picture

Deutschland ueber Alles!

Germany will continue to be the engine and paymaster that keeps the Eurpean project going,

eventhough it costs alot of fiat, Euro "insurance premiums" to the Brussels beurocratic

parastites. Together they may prevent the recurrence of the fratricidal bloodletting of the 20th century.

A relative small price to pay cosidering the human and economic costs of WW1 and WW2 !