The Spanish Government has extended for two years the so-called anti-takeover shield that seeks to protect strategic sectors from foreign investments. Thus, today the Council of Ministers approved the extension of the transitional regime for suspension of liberalization of certain foreign direct investments in Spainwhich is established in sections 2 and 5 of article 7 bis of Law 19 of 2003, of July 4.
This measure will be extended until December 31, 2026, thus maintaining the protection of strategic sectors and national interestthat affect safety, health and public order.
The regime will apply to foreign direct investments made by residents of other countries of the European Union, EU, and the European Free Trade Association, EFTA.
In the case of companies listed in Spain, it will affect those whose shares are, in whole or in part, admitted to trading on an official Spanish secondary market and have their registered office in Spain. In the case of unlisted companies, the anti-takeover shield will be applied when the value of the investment exceeds 500 million euros (US$519 million).
Likewise, direct foreign investments are considered those in which the investor holds a stake equal to or greater than 10% of the share capital of the company. Spanish society. Also in cases in which it acquires control of the company in accordance with the criteria established in article 7.2 of Law 15 of 2007, of July 3, on the Defense of Competition.
Furthermore, this transitional regime includes investments made by residents in Spain whose beneficial ownership corresponds to residents of other EU and EFTA countries. Beneficial ownership is defined as the direct or indirect possession or control of a percentage greater than 25% of the capital or voting rights of the investor, or the exercise of control by other means.
