- Saudi state-backed STC set to be Telefonica’s top shareholder
- Gulf firms have been investing in telecom assets across Europe
The headquarters of Telefonica SA in Madrid, Spain.
Photographer: Paul Hanna/BloombergA Saudi Arabian state-backed telecom firm is set to splash out $2.5 billion to become the biggest shareholder in Spain’s Telefonica SA, marking the latest instance of Middle Eastern wealth flowing into key European communication assets.
The move by Saudi Telecom Co. will likely draw scrutiny from the Spanish government, which views Telefonica as a company of strategic importance. If it goes through, that would mean two of the biggest European telecom firms will count state-backed Gulf companies as their top shareholders.
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