The Long Road To Success From Mfi To Nature

2021-01-27   |   by CusiGO

Australia’s Monetary Fund (MFI) proposed on Tuesday to acquire a 22.69% stake in naturjee. Although it has brought an interesting premium to shareholders, there are still long-term obstacles. The main obstacle it faces is the suspension of foreign investment in important Spanish companies, which the Spanish government launched at the beginning of its first alert to the epidemic in March this year to protect strategic companies and sectors from the impact of the coronavirus epidemic. Energy is one of the protected sectors, so IMF investment must be approved by the government, and the government must make a decision within six months.

On 17 March, three days after the first alert, a decree on emergency measures to deal with the epidemic was adopted, which provides for a “suspension of the liberalization regime for certain foreign direct investment in Spain”. In fact, this is an amendment to the law governing these issues, so that during the epidemic, a foreign company or investor was temporarily prohibited from owning more than 10% of a Spanish company in a sector “affecting public order, public safety and public health”. These include key infrastructure (energy, water, defense and health, etc.), key technologies (robotics, energy storage, etc.), provision of key inputs, especially energy, departments and media for obtaining sensitive information.

A source from the Ministry of industry, trade and tourism said that as far as nature’s offer is concerned, it obviously involves an energy company and therefore is clearly within the scope of the royal decree. In this case, the rule stipulates that people interested in these investments must obtain the administrative license finally granted by the government. This one takes six months. If there is no reply after this period, it is understood that this action is not allowed under Law No. 19 / 2003 on these investments, as amended by the decree of 17 March.

In order to obtain such authorization, the investment company must inform the Ministry of industry, especially the General Administration of international trade and investment under the Ministry of Commerce, of its intention. The Committee on foreign investment is an inter ministerial collegiate body under the State Secretariat for trade. Once it receives it, it will draft a report in accordance with Royal Decree No. 664 / 1999 of 23 April. The report is not binding, but it is a report used by the State Secretariat of Commerce to make a request to the Council of ministers, which has the final decision according to the same royal decree.

From the date of receiving the application, the administrative department has six months to make a decision. If it remains unresolved after this period of time, the application shall be deemed rejected, and a time limit for lodging an appeal through a contentious administrative action shall be set.

Industry insiders pointed out that the formal request of monetary and financial institutions for natural disaster action has not yet been received, so it is too early to take any action now. Unlike the French government’s immediate opposition to the Canadian group couche tard’s attempt to acquire Carrefour last week, the Department in charge of Reyes maroto tends not to comment in any way, pointing out the need for a detailed analysis of the operation and its participants.