Vice President Calviño reassigned the construction company’s president, Rafael del Pino, in a phone call decrying the decision as “wrong” and reminding him of the projects he has benefited from in Spain since its inception
Monumental anger from the government after Ferrovial’s decision to move its headquarters from Spain to the Netherlands at a time when the executive considers “critical” for the rest of international investors and the image this decision conveys in Spain. For example, the economic vice president, Nadia Calviño, handed it over to the president of the construction company, Rafael del Pino, in a telephone conversation in which he conveyed his “clear rejection”.
Calviño, the minister in charge of the economic space who has always tried to keep the balance within the decisions taken by the executive since the beginning of the legislature, reminded Del Pino that “it is not acceptable” for a company to as Ferrovial, “born and raised in Spain”, now show “this lack of commitment to your country”, government sources report to this newspaper. Calviño has highlighted Ferrovial’s Spanish nationality to criticize Del Pino’s decision. The Executive considers “it is a company that owes everything to Spain.”
Aside from the tax implications of this group’s decision, the Executive is aware that this announcement could damage the foreign image of the economy among other major investors. This is a sign “at a time of significant foreign appeal and confidence of foreign investors and companies in Spain”, the same sources emphasize.
In fact, the government accuses Ferrovial of going to the Netherlands in a “paradoxical” way, precisely when “an unprecedented process of public investment and modernization is underway in the sectors in which the Ferrovial group is present”. In other words, it reminds you that you benefit from the arrival of a large part of European funds to the Spanish economy.
The Minister of Agriculture, Luis Planas, also called on Ferrovial to clarify its continuity and its commitment to Spain: «It is very important that Ferrovial clarifies this continuity. I believe that intention exists, which is positive, but Ferrovial must be the one to provide the corresponding explanation and even more so in a context where we receive a lot of foreign investment in Spain,” he assured during an informative breakfast.
Planas emphasized that Ferrovial is a “great economic group” of which the Executive is “proud”. “Not only does he not have a business in the country, where he has investments and workers, but also outside Spain,” he stressed.
Jump to the US
The company announced at the last minute on Tuesday that it will propose to its shareholders’ meeting to move its headquarters to the Netherlands, arguing that most business is generated abroad. Although the group has explained to investors that it is going to that country because it has “a stable legal framework” in the legal field and stability for the company, not forgetting an “AAA credit rating”, the highest possible in the thermometer they use the major investment funds.
The relocation of the registered office is one of the most important decisions any company – big or small – can make and represents a point of confidence for the company towards the legal destination it is moving towards. This happened, for example, when several large companies moved their headquarters from Barcelona to other cities, such as Madrid or Valencia, after 1-O’s independence process in 2017.
Formally, the Board of Directors has made this proposal by stating that 82% of its income and 96% of its market capitalization is abroad. To complete this transfer, the board has proposed a merger between the parent company and Ferrovial International, a Dutch European public limited company that owns exactly 86% of the company’s assets.
The formal objective of Ferrovial, which has earned 186 million in 2022 (84% less), is to list in the Netherlands and to make the jump to the American stock exchange at a later date. However, the company did not clarify in its statement to the market yesterday why it is not making the jump directly from Spain, without having to move its headquarters to another European country. The group – he insists – wants to “benefit from internationalization, a huge advantage of being in both countries,” say company sources, pointing to its ultimate goal of being listed in the world’s leading economic power, although this step “will not be as direct”. .
One of the changes that the change of address entails is that related to taxes. By moving its headquarters to the Netherlands, Ferrovial will stop paying the taxes it previously paid to the Spanish treasury, although the group clarifies that it will have no “relevant tax impact” as it will pay between 1% and 1%. 5% of your annual tax payment. According to the latest available data, Ferrovial has 15 employees in the Netherlands and only a small part of the income comes from that area.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
