Bloomberg
CNBC: EU proposes new rules to tackle takeovers from state-backed firms like those in China
* The proposal kicks off a discussion period that lasts until September.
* State influence has often been discussed in the EU, but the ongoing pandemic has made the issue even more pressing as many businesses are struggling for cash.
* “There is a lot of money coming into the union,” Vestager told reporters, adding that this is why her team needs new tools to oversee it.
The EU is making it harder for Chinese and other foreign state-backed firms to buy stakes in European companies, as concerns grow over unfair competition.
The European Commission, the executive arm of the EU, proposed Wednesday to have a bigger say when foreign state-backed firms buy stakes in European companies to a point where it could prohibit the merger — if its deemed that it could create market distortions.
The proposal kicks off a discussion period that lasts until September, but it comes after Germany and France pushed for changes at the top level. In a letter sent to the EU in February, both governments said it should revise its guidelines regarding mergers, as European firms were increasingly fighting against players that received “substantial state support.”
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Update #1: Europe is building defenses against Chinese takeovers of key industries (CNN)
Update #2: Brussels forges new weapons to shield EU market from China (Politico)
WNU Editor: Do to China what China does to everyone else.
