Deals
EU Outlines New Powers to Protect Firms From Chinese Takeovers
- Commission to suggest fines for state-backed foreign firms
- New policy could stop state-financed takeovers of EU companies
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Companies from outside the European Union that benefit from state support face financial penalties for undercutting homegrown rivals and could potentially be banned from making acquisitions in the bloc under a set of suggestions due to be unveiled by the EU executive next week.
The European Commission will lay out a menu of options to counteract forms of state subsidy including tax breaks, capital injections by governments, debt relief and preferential financing terms. The penalties, according to a draft of the document seen by Bloomberg, may include restricting access to the EU market or forcing companies to divest parts of their business. The aim is to ensure a level-playing field between European firms and foreign competitors.