At both the Olympic and Paralympic Games, it's not just the performance of the athletes that counts, but also the ranking of the countries. We celebrate the coming together of peoples and continents, but we also exacerbate nationalist sentiments. In economic matters, it's much the same: The virtues of free trade are praised (less and less), but the national interest is significant, whatever the economic cost. And the trend is gaining momentum.
Currently, three issues show how prominent it is. The Japanese worry about the Canadian group Couche-Tard's interest in their national institution, the 7-Eleven stores. The government is being urged to oppose it. In Germany, the Thyssen conglomerate is attracting a lot of interest. Its steel division is set to be taken over by Czech Daniel Kretinsky but controversy is growing.
On August 29, the president of the group's supervisory board, Sigmar Gabriel, former minister and leader of the Social Democratic Party, dramatically resigned, as did the head of the steel division, Bernhard Osburg. They criticized the group's governance against a backdrop of massive restructuring plans.
An emblematic case
Lastly, in Spain, the government blocked the takeover of the local rail champion at the last minute. This is an emblematic case as Talgo is a renowned company, selling regional trains and high-speed trains in many countries, but the company, founded in 1947 by José Luis Oriol, is now majority-owned by foreign investment funds. Foremost among these is the Trilantic group, set up in New York by former Lehman Brothers bankers, which holds over 40%.
Prime Minister Pedro Sanchez is less afraid of America than his EU partner Viktor Orban. The consortium seeking to acquire the Madrid-based manufacturer is made up of Talgo's colleague, the Magyar Vagon group, backed by the Corvinus investment fund, owned by the Hungarian state. The Spanish government has not explained its decision. But Hungary's pro-Russian stance, and its reputation as a gateway for Chinese industrial interests into Europe, surely played a part.
Whether social, economic, or political, there are countless obstacles to doux commerce. And it's not France, protector of its rail manufacturer Alstom, which prohibited the takeover of major retailer Carrefour by Canada's Couche-Tard, that will say otherwise. Medals come first.