The Berlin Administrative Court recently declared that the Federal Ministry of Economics was in the wrong for blocking Chinese company Aeonmed Group's acquisition of Heyer Medical AG, a German ventilator manufacturer. The court pointed out hearing errors and missed deadlines as the main reasons for their decision, announced on Thursday.
Heyer Medical AG, based in Bad Ems, Rhineland-Palatinate, faced bankruptcy in 2018, leading to Aeonmed Group's interest in purchasing the company. However, the Federal Ministry of Economics stepped in and halted the acquisition in April 2022, citing public order and security concerns during the COVID-19 pandemic. The move aimed to prevent "serious risks" to these "protected assets" potentially arising from the takeover.
Aeonmed Group challenged the decision and filed a lawsuit. The ruling is set to be appealed on Wednesday, following the Administrative Court's decision to side with the Chinese company.
In 2020, the Federal Ministry of Economics initially prohibited the acquisition due to concerns over medicine-related security. The Berlin Administrative Court overturned this decision in 2023, but only for procedural reasons, not regarding the security risks in question.
Sources: DPA
Enrichment Insights: Initially, the Federal Ministry of Economics (BMWK) blocked Aeonmed Group's acquisition of Heyer Medical AG in 2020 due to concerns about potential risks to public order and security accompanying the supply of critical medical products. The ruling from the Berlin Administrative Court in 2023, however, turned this decision around due to procedural errors, not addressing the substance of the security concerns.
This case demonstrates the intricacies and difficulties in Foreign Direct Investment (FDI) oversight, specifically in vital sectors like healthcare.
