According to a KPMG report, between 2000 and 2018, 364 large Italian companies were transferred to foreign ownership for a value of 72 billion euros. Italian companies have tried to enter the properties of French companies, and in part they have also succeeded, buying 231 companies for 41 billion euros, but the comparison is rather unforgiving. Why this sort of Italian sale of companies?
- our system often gets stuck in generational changes, and the new generations of entrepreneurs, when they are there, are unable to guarantee management continuity and prefer to sell;
- the French financial system, with its large banks closely linked to industrial groups, has been much more active, even than the Germans, in financing expansions through mergers and acquisitions;
- the tax burden often facilitates French groups based in tax havens such as Luxembourg.
Within the next year, however, things will get heavier and there is now a continuous flow between Milan and Paris, but one-way. Covid-19, by increasing economic uncertainty, has even accelerated this transfer, pushing more and more entrepreneurs to leave their offices with nestbags in their pockets. Even without considering the purchases of the last quarter, we already have three defined deals:
- Borsa Italiana has long been under the aim of Bourse de Paris which would acquire it from the London Stock Exchange. The company that manages the information on our listed groups would go under the control of Paris. For months there has been talk of the application of the "Golden Rule", but do you really see the Conte government doing something against Paris? Seriously?
- FCA goes to Paris, although it was no longer Italian, but Dutch-British-American;
- Luxottica is about to leave for France and being the parent company Delfin based in Luxembourg so it is difficult to intervene as Golden Share or any other cunning to prevent it from going abroad
The beauty is that Italy has a strong trade surplus vis-à-vis France: we are no less efficient, simply on the one hand our banks do not help us expand, on the other our entrepreneurs are less motivated to resist. In the end who makes him do it not to fight against international competition, which is the lesser evil, but against the real great enemy of Italian companies: the Government and its relentless bureaucratic machine.
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/che-bello-la-francia-si-e-comprata-364-aziende-italiane-e-vedrete-dopo-la-distruzione-del-covid/ on Mon, 08 Jun 2020 11:14:45 +0000.