Is it bad for British companies to be owned by foreign investors or is that just total xenophobia?

Question

i.e BAA being bought by a Spanish firm.. perhaps we will get sangria and tapas at all the airports?!! Woohoo!

Answer 1

Foreign ownership is not always bad. It depends on the management team of the acquiring company. In most cases, you won't even notice the change.

Answer 2

It's no worse than British firms buying foreign companies. (e.g., BP buying Amoco/Arco/Castrol). There is a risk of any foreign company (from anywhere) having different strategies and marketing expectations from the home country. 'Good' or 'bad' very much depends upon the perspective.

If you're an employee that just got bought, and are at risk of losing your position, your perspective is likely to be that it is very bad. On the other hand, if you're an investor, and the new owners can add capital, increase market share, or otherwise act in such a way as to improve share price, you'll probably think it's pretty darn good!

(And if you're a fired employee that owns shares with the price going up, you're likely VERY confused.)

On the other hand, it could depend upon who is buying the company. The recent news reports about an Arab company purchasing the right to operate the Miami port system is an excellent case in point. There may have been a significant degree of xenophobia reflected in the hurrah that arose out of that announcement, but it would be unwise not to at least ASK questions about how such a transaction could impact security.

Answer 3

Foreign investment has the added cost of possible higher unemployment levels because very high returns must be sent to the mother country in the shortest possible time. It doesnt matter
what party one comes from, the truth is that the family silver has been sold. This smells of treason and must be discouraged at all times. The loss of Co culture is primary in BAA's case as immediate differences will be noticeable at all airports.

Answer 4

Any profits being made by BAA will now be chanelled back to Spain. In terms of macroeconomics we will not see the trickle-down of money as it will not be spent in the UK.

If a company is failing then foreign investment is better than closure, but ideally we would want to keep the profits in our own economy.

Answer 5

MOstly it's ok but recent events have shown that some foreign companies try to get what they can in the way of financial incentives from our government and when these are not very forthcoming they pull out leaving our workers high and dry.

Answer 6

not a good idea selling out to a Spanish firm, their standards of work ethics and safety fall way below British Standards. Yes profits may increase but i think the cost we might pay in slack safety and security is too high a price to pay.

Answer 7

the most important thing is the owner's ability and not if he is British or other. Be calm! You live in Europe and must forget historical England.

Answer 8

I think not bad.

Answer 9

No.