The Hong Kong Economic Journal (HKEJ) recently reported that the administration of Italian Prime Minister Mario Draghi has vetoed a Chinese acquisition of an Italian company. This was the third veto since Draghi took office in February this year. The Shenzhen Stock Exchange had listed Zhejiang Jingsheng Mechanical (300316.SZ). It issued a notice stating that a joint venture with Applied Materials Hong Kong Branch planned to acquire the Italian branch of a U.S. display printing equipment company. At a Cabinet Meeting on November 18, the Italian government vetoed the deal. Italian Industry Minister Giancarlo Giorgetti favored the use of the veto power, saying the transaction may have an impact on the semiconductor industry. The semiconductor industry is regarded as one of the strategic industries in Italy. Italy enacted the “Golden Powers Bill” in 2012 to prevent non-EU companies from acquiring companies in strategic industries. Since then, this is the fifth time that relevant powers have been exercised. The first four times involved Chinese companies, and the Draghi administration made three of those decisions.
Source: HKEJ, November 24, 2021
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