Margrethe Vestager: Prevent Chinese takeover of European companies

(Patria) – EU member states should buy shares in European companies to get ahead of China in this regard, the European Commission suggests in the context of efforts to protect businesses that have found themselves in crisis due to the coronavirus pandemic.

There has long been fear that Chinese competition is targeting the takeover of certain European companies, and the fear is growing because businesses are particularly vulnerable in times of crisis, especially in an economic downturn like the current one when share values are falling relentlessly.

Margrethe Vestager, EU Commissioner for Competition, told the Financial Times that 'we do not have a problem with (EU) countries participating in the market if it is necessary – as long as they secure stakes in the company, if they want to prevent takeovers of this kind'.

'It is very important to be aware of the real risk that weakened businesses can be taken over,' Vestager warned, adding that the situation requires attention and that the commission is already 'working intensively' on 'one of the main priorities'.

Therefore, regulations are necessary, which, according to the commissioner, must be adopted 'as soon as possible' and should be approved by the European Parliament.

This is just one of the proposed measures that the European Commission will take to help European companies.

Laws related to state aid will also be relaxed, allowing EU member states to help or even nationalize certain businesses facing closure due to the economic downturn caused by the pandemic, Euronews reports.