We continue to write about it, but the recovery of the Spanish economy has had massive beneficial effects in many sectors of the economic and financial arenas.
Retail and consumer confidence are up, the property sector is floating and taking off and business in some areas is booming.
Not only is there a greater internal demand, but foreign investors are returning to Spain in their droves and snapping up good deals as quickly as they can.
In fact, foreign investment into Spanish companies and assets this year has been phenomenal and 2015 will close on a high.
Spain’s economy is the fastest growing in Europe, yet interest rates are still low, credit is more readily available and the need to reduce the capital stock of a company has meant that Spain has become an attractive market for foreign investment once more.
Surprisingly, the sectors that have benefitted the most this year include that of energy, particularly renewables and real estate – offices, buildings and land.
And, foreign banks, companies and investment funds have currently invested almost 36 billion euro in Spanish companies throughout this year, according to sources within the business sector.
However, the final amount will be slightly higher as there are still a couple of operations to complete before the year is out. These include the purchase of the largest Spanish shipping container designer and operator – Grup Marítim TCB – by Danish shipping and energy company Maersk or the disinvestment of Parques Reunidos, one of the world’s fastest growing leisure park operators.
Nevertheless, despite all the activity this year, it is highly unlikely that foreign investment into Spanish companies will top the 47 billion euro reached in 2014.
The biggest deals closed during 2015 have been the purchase of Spanish telecommunications operator Jazztel by French company Orange and the acquisition of a portfolio of toxic mortgages belonging to Catalunya Bank by American investment fund Blackstone. The two operations were worth in the region of 3.5 billion euro.
Also worth mentioning are:
- Chinese investment fund Gingko paid 2 billion euro for Madrileña Red de Gas (natural gas distribution company in Madrid)
- Cerberus acquired Renovalia (renewable energy) for 1 billion euro
- Germany company Nordex took over Acciona Windpower
- American KKR purchased 80% of Gestamp Solar
- Carlos Slim purchased Realia (property)
- Philippine group Emperador acquired the Torre Espacio tower in Madrid and the Terry y Fundador bodegas in Jerez
- Campofrío and Panrico (food) were taken over by Mexican companies Alfa and Bimbo
- The Ritz Hotel in Madrid was sold to Chinese group Mandarin andSaudi group Olayan
Source: www.expansion.com
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