Spain Extends Foreign Takeover Curbs to Help Aid Recovery

Spain on Tuesday approved a year-long extension, until the end of 2022, to restrictions on foreign takeovers of Spanish companies it regards as strategic, Reuters reported. As part of measures to protect Spanish firms in the face of the coronavirus pandemic, Madrid imposed a process of authorization for the acquisition by a foreign company of stakes larger than 10% in companies considered to be strategic. The decision to extend the potential veto comes after U.S. firm KKR offered to buy Telecom Italia for 10.8 billion euros ($12.2 billion) in what would be Europe's biggest private equity buyout. Shares in TIM's Spanish rival Telefonica rose 6.4% on Monday on speculation it could also become a target, although they pared most of those gains on Tuesday as the government looked set to extend the restrictions. Read more.