The Spanish government will investigate Saudi Arabian telecom group STC’s 9.9% stake purchase in telecom giant Telefónica, Spain’s Vice-President and Finance Minister Nadia Calviño told the press in Brussels.
The government will look at the takeover’s effects on “the security and defence of Spain” and on STC’s “participation in the capital, the exercise of voting rights and participation in the Board of Directors or other decision-making bodies of the company”.
“Telefónica is clearly a strategic company for our country, and the government will apply all the necessary mechanisms, always with the defence of Spain’s strategic interests at the forefront of our minds”, Calviño said.
At the same time, though, Calviño also emphasised the importance of not undermining “Spain’s attractiveness in terms of foreign investment, which is absolutely essential for boosting our country’s economic growth and technological modernisation”.
“Spain must ensure decision-making in companies such as Telefónica, guardians of sensitive data”, Spain’s Vice-President and Labour Minister Yolanda Díaz said on X.
“Better regulation and protection are needed to avoid takeover bids,” and “we must protect our digital future”, he added.
Despite concerns, STC’s CEO Olayan Alwetaid clarified that it has no intention of acquiring control or a majority stake in Telefónica, EURACTIV’s partner EFE reported.
The company contacted the government the day before the buyout and “conveyed the friendly nature of the operation”, Calviño said.
STC is the Middle East’s digital leader, offering innovative products and services in Saudi Arabia, the Middle East and North Africa, according to the company listed on the Saudi Stock Exchange with a market capitalisation of €49.2 billion.
According to Alwetaid, the company has decided to invest in Teléfonica because it has a unique portfolio of state-of-the-art infrastructure assets and technology platforms, where it is developing activities in cognitive intelligence, edge computing, and the Internet of Things.
(Max Griera | EURACTIV.com)
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