AIXG Aixtron SE ADS, Each Representing One Ordinary Share

FRANKFURT—Germany's economics ministry has withdrawn its approval of a €670 million ($728.89 million) Chinese takeover of Aixtron SE, the company said, the latest sign of government alarm about a wave of Chinese takeovers.

Aixtron said on Monday the economics ministry withdrew clearance for Grand Chip Investment GmbH's takeover of the German chip-equipment manufacturer. The buyer is the German unit of China's Fujian Grand Chip Investment Fund LP.

Aixtron said the ministry would reopen its review of the offer. It didn't provide further details.

The company's shares were trading down 7.8% at €5.40 around 0800 GMT on Monday, in response to the withdrawal of the takeover approval.

The ministry originally cleared the deal in early September, after Grand Chip bid €6 per share for Aixtron in May. A spokesman for the economics ministry wasn't immediately available for comment.

The planned purchase of Aixtron is part of a wave of Chinese acquisitions of German technology firms. One of the larger transactions was Midea Group's $5 billion bid for Kuka AG, which makes robotics systems for the auto and aerospace industries. In response to that deal, the economics ministry proposed putting together a European consortium to bid for Kuka, rather than see it go to Midea. A consortium never materialized and Midea completed its $5 billion takeover this summer.

Chinese companies have bought German companies at the rate of about one a week since January, according to data provider Dealogic. By early October, Chinese companies had spent around $11 billion on German companies this year—far exceeding the previous record of $2.6 billion in 2014.

(END) Dow Jones Newswires

October 24, 2016 04:55 ET (08:55 GMT)

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