• Stock Exchange. The Government shields the Spanish listed companies from possible takeover bids

The Government has decided to reinforce the shield to the Spanish listed companies in the middle of the stock market crisis due to the coronavirus that has hit their valuation hard. In this context, the Executive has approved to extend the reform of the regulations on foreign investments to prevent companies from countries not only from outside the European Union, but also from the community sphere from taking control of Spanish entities in strategic sectors , always and when they are controlled by non-EU investors. In this way, neither will be able to acquire more than 10% of the share capital of Spanish companies.

Specifically, according to the Royal Decree Law approved by the Council of Ministers on Tuesday, this restriction will also extend to acquisitions made by investors residing in countries of the European Union and the European Free Trade Association when said investors are controlled by entities resident outside that territorial scope.

This real ownership shall be understood to exist when the latter ultimately own or control, directly or indirectly, a percentage greater than 25% of the investor's capital or voting rights, or when they exercise control, directly or indirectly, by other means. , from the investor.

In this way, the scope of the suspension of the liberalization regime of certain foreign direct investments in Spain for reasons of public security, public order and public health in the main strategic sectors that was established on March 17 is expanded.

At the same time, the procedure for the processing and resolution of certain requests for prior authorization of foreign investments is streamlined, for which purpose a transitional procedural regime for operations that are already in force is introduced in the second transitory provision of the Royal Decree-Law approved this Tuesday. in progress when the new article comes into force and for those whose amount is between 1 and 5 million euros , exempting from the need for prior authorization operations of less than 1 million euros.

On March 17, Sánchez justified the reform of the regulations on foreign investment "to prevent companies from outside the EU from taking control of Spanish entities in strategic sectors, taking advantage of the conjunctural fall of their actions in this situation of economic crisis and extreme volatility in financial markets. "

The sectors covered by this restriction are critical infrastructures, critical technologies and dual-use products, supplies or sectors with access to sensitive information, such as personal information or data, as well as the media, as specified by Europa Press. .

According to the criteria of The Trust Project

Know more

  • economy
  • Business
  • Coronavirus
  • Covid 19

Politics The Generalitat announces a credit line of one billion for companies and the free telephone number 061

Covid-19Ceramic Accelerates Shipments to Shield Against More Coronavirus Restrictions

Covid-19Marina d'Or closes indefinitely due to coronavirus and applies a temporary ERE to 240 employees