A Foreign Direct Investment Report, published on Wednesday 13 March by the European Commission, confirms the increase in foreign ownership in several European companies active in key sectors.
In 106 pages, the document provides a detailed mapping of EU foreign direct investment (FDI) by country and sector.
Foreign investors control about 3% of the companies in the sample and 35% of the assets, employing about 16 million workers in the EU.
Apart from traditional investors, in recent years, new investors have emerged from emerging economies, including China, and offshore financial centres. Unlike traditional investors, their acquisitions are concentrated in a limited number of sectors, including IT, automotive and aerospace, the report notes.
Finally, public companies, investment funds and private equity firms, as well as individuals, are increasingly active in merger activities.
Following the publication of the Commission's strategy on China (see EUROPE 12212/20) and on the eve of the European Council, where discussions will focus on relations with the Republic of China, the report could provide impetus for those who support a stronger EU policy towards the Chinese partner.
“Europe benefits greatly from an open investment policy, but we must be ready to act when our security and public interests are threatened”, said Cecilia Malmström, European Commissioner for Trade, when the report was published.
See original report: https://bit.ly/2uatbGd. (Original version in French by Hermine Donceel)