2023-09-09 07:44:28
The purchase of 9.9% of Telefónica’s capital by the Saudi group STC is just the latest big business puddle in which the Government of Pedro Sánchez has entered, which will soon have to decide whether to approve the operation , if he vetoes it or if he imposes conditions. But it is not the only episode of Government intervention in a business decision. The Ministry of Industry has already raised its hand to say that the recent transfer of ownership of Celsa to the creditor investment funds, by judicial decision of September 4, also requires its final guarantee and is subject to the imposition of possible conditions . There are still remains of mud from the previous puddle, into which the Executive rushed to try to stop Ferrovial’s decision to move its headquarters to the Netherlands. Neither in the case of Ferrovial, nor in that of Telefónica, did the Government’s information ‘meteorological services’ know how to anticipate the downpour.
Transfer of Ferrovial to the Netherlands
This is so far the case in which the Government has come out most obviously shorn. On February 28, Ferrovial, one of the main international construction companies and a prominent member of the Ibex, sent a cold and brief communicated to the CNMV in which it announced its intention to move its headquarters to the Netherlands to facilitate its jump to listing on Wall Street. The next morning, the Government came out in a rush to denounce the maneuver. From the economic vice president, Nadia Calvinowho got to work to look for all the legal loopholes, to the President of the Government, Pedro Sánchez, who, in an unusual event, criticized the president of the company, Rafael del Pino, by name and surname, and called him a “not very committed” businessman. The CNMV and the stock exchange manager (BME) also actively participated, working to dismantle the main reason given by Ferrovial. The CNMV and BME insisted that it could be listed in the United States in practically the same way from both Spain and the Netherlands.
Why does the Government need to prove that Ferrovial is lying?
Furthermore, the Government threatened to use the Ministry of Finance to investigate alleged fiscal motivations of the company or even the Del Pino family in the transfer of the headquarters. But despite the Executive’s insistence on criticizing the transfer, the process continued and was largely ratified by the Shareholders’ Meeting. It remains to be seen if, when the time comes, the Treasury will allow Ferrovial to apply the tax advantages of the merger tax regime or if, on the contrary, it will veto them, if it can demonstrate that the real reason for the transfer of the headquarters was to pay less taxes. (and not being able to get listed on Wall Street).
Celsa, the strategic steel sector
What will happen to Celsa now? The keys to the future of a giant with 10,000 employees
On September 4, the decision of Barcelona’s commercial court number 2 to transfer the ownership of the steel giant Celsa to the creditor investment funds was announced. Under the new bankruptcy law, the judge ruled against the Rubiralta family – until now the owner of Celsa – giving its creditors control of this industrial group that employs more than 10,000 people in Spain. Appealing to the strategic nature of the steel industry, the Ministry of Industry plans to apply foreign investment control regulations to authorize, or not, the transfer of Celsa to foreign-owned investment funds. If the transfer is authorized, the Government could, in any case, impose certain conditions to safeguard Spain’s industrial autonomy in this sector. Same as in the case of STC and Telefónicain this case the tool of State intervention resides in the one known as the ‘antiopas shield’‘ which, after the recent reform of July, is now regulated in royal decree law 571/2023. The ‘president’ of the Generalitat, Pere Aragones, that until the last moment has supported the design of an industrial plan that would allow the Rubiralta family to keep the company, however it has avoided ruling on whether or not the Government should invoke the ‘anti takeover decree’ in the case of Celsa: “That The Government will have to evaluate it,” Aragonès said this Thursday, avoiding getting into the same puddle as the Government.
IFM’s takeover of Naturgy
What conditions does the Government impose on the takeover bid for Naturgy?
In the long war unleashed since the Australian fund IFM announced its intention to enter the capital of Naturgy (in February 2021), where it plays a fundamental role Criteriathe investment holding of Caixabank, the Government has had a less muddy participation, despite the economic and strategic importance of the operation in a company that is now worth more than 25,000 million on the stock market. It must be taken into account that the shield regulations approved in 2020 allow the Executive to veto the purchase of a foreign investor that exceeds 10% in a company considered strategic. And the Australian offer to purchase Naturgy shares became the first operation subject to these new rules. And yes, the Government, seven months after the takeover bid was launched, in August 2021, authorized, although with conditions, the offer: it demanded that IFM support the new investments, maintain its headquarters in Spain and respect the job.
What is striking is that Caixabankthe largest shareholder of Naturgy (it has 26.7%) and also with a fstrong presence of the State in its capital (17%), rejected the takeover bid, which ended up with 10.8% of the shares in the hands of the Australians (they now control 14.5%). Right now, the situation is a game of skirmishes within the board of directors. IFM formally supports Naturgy’s strategic line, but continues to buy shares (17% gives it the right to two seats on the board) and has also tried to force the appointment of a number two in the Spanish company, something that its president has successfully resisted until now, Francisco Reynes.
#business #puddles #Government #Telefónica #Celsa #Ferrovial #Naturgy