Italy’s PM Draghi vetoes technology transfer to China

Italian Prime Minister Mario Draghi poses with China’s Foreign Minister Wang Yi as he comes for the G20 leaders summit in Rome, Italy Oct 30, 2021. REUTERS/Guglielmo Mangiapane

Sign-up now for Cost-free unlimited access to Reuters.com

ROME/BEIJING, June 7 (Reuters) – Italy’s prime minister, Mario Draghi, has vetoed a transfer of technological innovation and software package to China in a offer involving industrial robot maker EFORT Intelligent Tools (688165.SS), in accordance to a Shanghai filing and a source close to the make a difference.

The rebuffed team before this yr declared a deal to elevate its stake to 49% from 40% in Italian firm ROBOX, which styles and manufactures electronic factors for robotics and movement manage techniques.

In addition to the improved possession stake really worth 2 million euros ($2.14 million), the deal envisaged that ROBOX would authorize EFORT to use some of its resource codes.

Sign up now for Absolutely free endless access to Reuters.com

Even so, Draghi’s govt has prevented ROBOX from agreeing to the technological know-how transfer to China, the supply mentioned, whilst raising no objections to the enhanced shareholding.

The filing manufactured reference only to the governing administration veto, with no specifying what portion of the offer was turned down.

Italy reserves the proper to use its anti-takeover legislation, or so-referred to as golden powers, to ward off undesired bids in industries deemed of strategic importance this kind of as banking, power, telecoms and wellness.

With the addition of the ROBOX case, Rome has stopped foreign pursuits in Italy 7 times due to the fact the introduction of the golden powers in 2012. 6 of these episodes beat away Chinese bids and 5 have been under Draghi’s govt.

In March, Draghi annulled a 2018 sale of a military drones company to Chinese buyers. examine extra

On the other hand, Draghi’s approach has activated authorized challenges from both equally overseas acquirers and their Italian targets. examine more

The notification prerequisites have also improved purple tape for corporations, which in purchase to prevent the possibility of infractions and fines are informing the authorities of any mergers and deals even when it would not be needed, officials have advised Reuters.

Previous yr the number of notifications jumped to virtually 500, as opposed with 342 in 2020 and just 83 in 2019.

($1 = .9362 euro)

Register now for No cost unlimited access to Reuters.com

Reporting by Giuseppe Fonte in Rome and Ella Cao in Beijing
Enhancing by Gavin Jones and Matthew Lewis

Our Criteria: The Thomson Reuters Believe in Rules.