A PYMNTS Company

EU: EC president calls for more scrutiny in foreign takeovers

By  |  September 13, 2017

European Commission president Jean-Claude Juncker today confirmed his plans for a new framework to “screen” foreign takeovers of EU companies.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The commission is expected to set out more details on the foreign deal crackdown in Brussels tomorrow. Chinese takeover activity in particular has caused a stir in Europe, with China-to-EU mergers and acquisitions (M&A) reaching record levels last year.

    “Europe must always defend its strategic interests,” Juncker said in his State of the Union speech this morning.

    “This is why today we are proposing a new EU framework for investment screening.

    “If a foreign, state-owned, company wants to purchase a European harbor, part of our energy infrastructure or a defence technology firm, this should only happen in transparency, with scrutiny and debate.

    “It is a political responsibility to know what is going on in our own backyard so that we can protect our collective security if needed.”

    Figures from Thomson Reuters released September 13 show foreign takeovers within the European Union have declined for the third year in a row in 2017.

    Inbound M&A has totalled US$164 billion so far this year, down four per cent compared with this time last year. The UK, whose government is also considering plans for a crackdown on foreign takeovers, has been the most attractive EU destination for foreign investment, accounting for US$65 billion, or 40% of the total.

    Full Content: Europa & Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.