Spanish Labor Minister Yolanda Díaz asked the interim government, on Friday, to prevent Saudi Telecom Company (STC) from acquiring a 9.9 percent stake in Telefonica, in the first indication of opposition to the deal within the ruling coalition.
Diaz belongs to the smaller bloc in the Socialist-led interim government, and also holds the position of Deputy Prime Minister.
“My opinion is that we cannot allow this process to continue,” she told reporters in Rome.
“I will certainly work to ensure that this process does not take place,” she added, noting the strategic importance of Telefonica as an operator responsible for data transmission.
She stated that she had conveyed her position to Economy Minister Nadia Calpinho, who is also Deputy Prime Minister.
Calpinho, whose ministry has the authority to supervise all financial transactions, pledged on Wednesday to protect Spain’s strategic interests, but stressed the need to preserve the country’s ability to attract foreign investment.
Madrid can block STC’s purchase of a stake in Telefonica because it provides services to Spain’s defense industry, and the government can interfere in acquisitions of stakes exceeding five percent.
STC said on Tuesday that it had bought a 9.9 percent stake in Telefonica for 2.1 billion euros ($2.25 billion), following the approach of other companies in the Middle East in investing in telecommunications companies in Europe and Latin America.
2023-09-08 19:02:02
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