Poland Creates Safeguards against Non-EU Takeovers

The Polish government has approved regulations aimed at making it difficult for investors from outside the European Union to take over companies cheaply that Poland considers strategic for its economy, it said on Wednesday, May 20. 

The regulations are part of a government rescue package worth more than 300 billion zlotys (US$72 billion) to help the country survive the new coronavirus pandemic and the resulting economic crisis, reported Reuters. 

The development ministry, which devised the new rules, stated the rules would be binding for two years and would apply to public companies, producers of software used in power plants, transportation, and health systems, and companies in the energy, telecoms, and defence sectors. 

“We do not want to scare off investors but only protect Polish companies against hostile takeovers due to the deteriorating economic situation,” Development Minister Jadwiga Emilewicz said in a statement. 

In April, Germany similarly agreed to tighten rules to protect domestic firms from unwanted takeovers by investors outside the European Union.

Full Content: Reuters

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