The European Union's members states should buy stakes in European companies to stop them from falling into hands of Chinese rivals, the EU competition chief has told the Financial Times daily
MOSCOW (Pakistan Point News / Sputnik - 13th April, 2020) The European Union's members states should buy stakes in European companies to stop them from falling into hands of Chinese rivals, the EU competition chief has told the Financial Times daily.
"We don't have any issues of states acting as market participants if need be if they provide shares in a company, if they want to prevent a takeover of this kind," Margrethe Vestager said in an interview.
The coronavirus outbreak has made companies in Europe vulnerable to unfair competition. Vestager, who is also the executive vice president of the European Commission, said the EU executive body was working intensively to shield businesses from takeovers.
"It's very important that one is aware that there is a real risk that businesses that are vulnerable can be the object of a takeover," she added.
The commission unveiled a batch of proposals last month on how to protect EU jobs and support the economy. It includes aid to member states in the form of recapitalization to help them buy stakes in strategic companies at market price to prevent hostile takeovers by foreign entities.
