Cora Serrano B.|
Madrid (EFE).- Ferrovial’s unexpected announcement to move its headquarters to the Netherlands has generated a huge stir. Greater regulatory stability, an attractive tax climate, and lower cost of financing make this move closely watched, as its success may set precedents.
Ferrovial, founded in 1952 in Spain, has 82% of its business outside Spain and more than 90% of its investors are foreigners.
The company justifies this decision in that the Netherlands has a stable legal framework, has a triple A credit rating, is the location chosen by large companies with a European and North American presence, and at the same time facilitates going public in the United States.
First government reaction
The vice president Nadia Calviño has expressed her rejection to the president of Ferrovial, Rafael del Pino, since she understands that it is not acceptable that a company that was born and grew in Spain, thanks to public investment, shows this lack of commitment to its country .
The Minister of Finance, María Jesús Montero, regrets this situation, but acknowledges that the reality is that Ferrovial already paid more than 80% of its taxes outside of Spain, that there is no risk that investment in our country will move, that it will continue taxing here what corresponds to him and will maintain the jobs.
Both ministers emphasize that Spain is experiencing an important moment of attracting foreign investment and confidence with the arrival of 30,000 million in the last year.
How is this step interpreted?
From Renta 4, Ángel Pérez, maintains that, a priori, this transfer will not have much impact on the company’s operations, which will continue to maintain business and employment in Spain and be listed on the main selective stock market. Neither does he believe that it will have a high tax impact, taking into account that business in Spain has been quite residual for years.
However, it recognizes that it is a pioneering operation, since it becomes the first parent company, within the large Spanish companies, that will be listed in the United States with the entire group in a specific index, and not with subsidiaries as is the case with Iberdrola, Telefónica or Santander, or through ADR.
They do see the previous step through the Netherlands as surprising, something they had not seen until now, but they understand that it can facilitate the attraction of capital, report tax improvements and be more shielded in the face of possible takeover bids.
Possible contagion effect
The XTB analyst Darío García points out that this step “opens the melon” and reminds those that occurred during the height of the independence movement in Catalonia and that Spain is a tremendously controlled country for companies. In fact, he recalls that Iberdrola has already threatened to do so on occasion.
He understands that if there is sufficient acceptance, the efficiency and advantages are verified, more foreign capital is attracted and costs are reduced, it can set a precedent for other strongly internationalized companies, such as ACS.
García adds that the group must provide more details about this movement, justify the roadmap, the legal implications it may have for shareholders or the real euro/dollar impact.
From IG, Diego Morín, indicates that the company evaluated the possibility of going to London before Brexit and that this transfer will shield its internationalization, its growth and will bring it a more attractive fiscal climate and greater stability, in a context in which in Spain is increasing the burden with new extraordinary taxes.
In addition, listing in the US will allow you better financing conditions, more visibility, monetary stability and speed when it comes to raising funds.
From the International University of Valencia, Professor Tomás Gómez believes that it is bad news for the image of the country that can generate a contagion effect. In this sense, he regrets that Spain does not address a tax reform in conditions and occurrences occur in moments of uncertainty.
From the Universitat Oberta Catalunya (UOC), Cristian Castillo, describes it as a wake-up call, since there are many companies that demand legal certainty and points out that the Netherlands, such as Ireland or Luxembourg, are more attractive, with less taxes on profits and that several European companies have already opted for the Netherlands before listing in the US.
