Spain Plans to Examine stc – Telefonica Move

Spanish authorities plan to probe a move by Saudi company stc to take a stake in Telefonica. The government is concerned over the potential impact on national security given the operator’s status as a defense contractor.

Nadia Calvino, first deputy PM, cited the strategic importance of Telefonica to Spain as she told the press the government was looking into stc’s move after the operator informed it of the investment. Spanish government implemented various changes following the COVID-19 pandemic to protect its national interests, one of which includes an ability to put the stoppers on any deal involving the acquisition of stakes exceeding 10% by companies located outside the EU or trade area.

The politician said Spain will carefully explore the security implications and what level of control stc would hold over Telefonica, among other areas. Calvino committed to defending Spain’s national interests, with news outlets citing comments made on social media by second deputy PM Yolanda Diaz that the nation needs beefier rules around takeovers of strategic assets.