EU: Vestager wants power on tech company acquisitions

The European Union is taking steps to protect certain European companies holding “key technologies” from overseas takeovers, competition commissioner Margrethe Vestager revealed.

In a speech Vestager said the EU could put forward a proposal this autumn which would see the European regulator step in on certain technology deals, after Germany adopted similar rules in July.

Speaking at the Ambrosetti Forum in Italy, Vestager said, “We’ve heard concerns about foreign – often state owned – investors taking over European companies that control key technologies.

“This issue isn’t simple. It needs careful consideration before we decide how to act.”

In Germany, the government is now able to block acquisitions involving cutting edge technology, with the issue first coming to light after China-based consumer electronics company Midea Group made a bid for robot maker Kuka in 2016.

Midea’s acquisition was finalised in January without any intervention, despite concerns raised by Germany’s economy minister.

Currently, the EU can rule against any mergers on competition grounds, while national governments can also step in if they have concerns a takeover could affect national security.

Full Content: Luxemburger Wort

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