IMST: government stops takeover by Chinese group

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Minister of Economic Affairs Peter Altmaier

Photo: Britta Pedersen / dpa

The German government has stopped the takeover of a German company by a Chinese arms company.

It is about the IMST company from Kamp-Lintfort in North Rhine-Westphalia, as can be seen from a cabinet submission.

The Federal Ministry of Economics announced that the cabinet had decided to authorize a prohibition under the Foreign Trade Ordinance.

According to the template, IMST has particular expertise in the field of satellite / radar communication and 5G technology.

According to the template, the company was to be taken over through specially founded, intermediary companies behind which Addsino is hiding, a subsidiary of the Chinese state arms company Casic.

Foreign trade law allows the Federal Government to check whether the acquisition of a German company by a foreign investor poses a threat to the security of the Federal Republic.

In the case of IMST GmbH, the examination confirmed that the acquisition would have meant “actual and serious dangers” for the mentioned protected goods, according to the cabinet proposal.

IMST has developed a key component for the TerraSAR-X earth observation satellite.

The Federal Ministry of Defense bought their data for a three-digit million amount.

From this, a high-precision 3D elevation model was calculated for military purposes, which is used, for example, in reconnaissance, command, simulation and weapon systems.

"Without a ban, this know-how would flow to China and contribute to China's armament," it said.

The acquisition also jeopardizes Germany's technological sovereignty in the area of ​​future mobile radio systems, according to the proposal.

IMST has been dealing with commercial radio technology for 25 years.

5G technology represents a key digital technology. "After the acquisition, IMST would no longer be a reliable partner because IMST would then be under the control of a Chinese armaments company," writes the Ministry of Economic Affairs.

The company itself did not want to comment on the Berlin decision.

According to the Federal Gazette, IMST achieved an annual turnover of 13.4 million euros in 2018 with 146 employees.

The company was founded in 1992 as an offshoot of a project by the then University of Duisburg.

The abbreviation IMST stands for Institute for Mobile and Satellite Radio Technology.

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