Blog: French protectionism
Catherine Sleep | 7 March 2006
The French government says it will protect its 20 leading companies from foreign aggressors. That’s overseas investors, to you and me. Touching, perhaps, but economically dubious. Protecting your market from inward investment runs contrary to most economists’ vision of a healthy business strategy.
Danone, Carrefour and the like do not need to be protected from Pepsi or indeed any other potential investor. They operate globally and employ an international workforce. They can run their businesses perfectly well in a free and competitive marketplace without contrived defence measures.
The immediate impact of the news of the government’s bizarre initiative was to send both companies’ share price down. Rough justice.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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- Nestle Q1 update: four things to learn
- Interview: Sir Kensington's on sale to Unilever
- Column: Why snacking is the new meal
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- PepsiCo affirms full-year target as Q1 hits mark
- Tyson to buy burger-to-entree firm AdvancePierre
- Icelandic to sell Saucy Fish Co. owner Seachill