Spain investigates Saudi Arabia’s 9.9% acquisition of Telefonica
Saudi Arabia’s STC Group announced a 9.9% purchase in the $2.1 billion telecom company, but the Spanish government must approve the plan.
DUBAI — The government in Spain is looking into the Saudi Arabian STC Group’s 9.9% acquisition of its telecom giant Telefonica, the country’s acting Economy Minister Nadia Calvino announced on Wednesday.
STC announced the purchase in the $2.1 billion telecom company in a Tuesday press release.
Calvino said that STC — which is 64% owned by the kingdom’s sovereign wealth fund — had contacted the Spanish government after the acquisition to notify it of the agreement. In comments to reporters while on a visit to Brussels, she called Telefonica a "strategic company" for Spain that the government will prioritize it as a strategic interest.
🔴 Habla Nadia Calviño sobre la adquisición de un 9,9% de las acciones de Telefónica por una compañía Saudí: "Estamos analizando todos los factores".#EconomíaARV ▶️ https://t.co/Et0SZrKdKf pic.twitter.com/DhpMxDz0ux
— AlRojoVivo (@DebatAlRojoVivo) September 6, 2023
Madrid has the power to veto acquisitions of stakes 10% or larger in certain companies by organizations outside of the European Union and European Free Trade Association. The mechanism was established in 2020 to allow the government to block acquisitions of major Spanish assets and businesses at low prices as values plummeted during the COVID-19 pandemic.
