Spanish invasion of the UK

Firstly, I have to confess, my britons. I was an invader. Last year I landed there with a laptop and a cd player as lethal weapons to raid the british labour market. Luckily I did, and I won. I spent one of the most exciting years of my life. Like me, hundreds of young Spaniards enjoy the UK adventure, which is, mainly, London adventure. And like them, a non small number of Spanish companies.

In war times, contenders put their focus in communication and energy highlights. The Spanish economical invasion over UK seems to draw this strategy. The telecommunications operator, O2, was taken over last year by Telefónica, the biggest Spanish company in this area. The British most important airports firm, BAA –which administrates Stansted, Heathrow, Gatwick, Edinburgh, Aberdeen and Southhampton – is owned by the Spanish construction giant, Ferrovial. This company also has two lines of London Underground through the firm called Tube Lines. In addition, the enterprise who lights my life, Iberdrola, is to pay €17,6bn (£11,6bn), for Scottish Power.

If this is not enough, Santander Bank painted all England with his corporative colour one year ago. Abbey branches, the third bank in the UK, are now red and their clients had to adapt themselves to the Santander logo. Botín, chairman of the Spanish bank , didn´t find so many obstacles to develop this operation. Why? If foreign companies try to buy the local enterprises European governments, actually, try to make it difficult. Just see some news about European bids:

• Spain's 'chosen few' remain off-limits
• Autostrade/Abertis Affair

What is the difference between English policies and other European countries? In Spain the current government is being criticised for interventionism in E.ON/Endesa affair. That could be the key. Brian Durrant of Moneyweek says:

“The openness of the UK corporate sector to foreign ownership often amazes commentators abroad. After all the Americans will not let foreigners buy airlines, television networks or any business remotely connected with security. France protect eleven sectors from foreign contractors, including casinos and food giant Danone. Spain is fighting a last-ditch battle to stop Eon of Germany buying Endesa, Spain’s national energy champion. British businesses and political leaders are generally comfortable about this state of affairs. Even when the state-run Russian energy company Gazprom expressed an interest in buying Centrica last year, Tony Blair ruled out any possibility that the government would block the bid.”

Simon Nixon from Moneyweek explains as well why European companies are so interested in the English market:

“Because conditions could not be better for them. After several years of restructuring during the post-bubble bear market, European corporate balance sheets are strong, share prices are soaring and debt is extraordinarily cheap. The emergence of China and India is also driving a new phase of industry consolidation as companies prepare to compete in an increasingly global marketplace.

That is leading European companies to beat a path to Britain’s door for two reasons: first, because the UK market is the most open in the world; and second, because the UK companies they’re targeting are global players with commanding positions in world markets.”

BBC News says also:

“The Anglo-Saxon approach, and in particular the British approach, is more entrepreneurial. The German is controlled, it's more bureaucratic,"

So, it seems like English economy is the most liberal in Europe and investors are conscious of this reality. Politics are not so involved in financial movements there. “If it is good for the market, it is good for the country” could be the British economy slogan. In the meanwhile, Spanish companies take the chance and they keep invading the world: Roads in Italy and the US, telecommunications and energy in Latin America, etc… Even we do brain washings with Flamenco and omelettes. Beware World! Spain is growing!