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A welder works at a Ferrovial construction site in Madrid, Spain. Picture: SUSANA VERA/REUTERS
A welder works at a Ferrovial construction site in Madrid, Spain. Picture: SUSANA VERA/REUTERS

Madrid  — The Spanish government on Wednesday criticised infrastructure group Ferrovial’s decision to move its corporate domicile to the Netherlands, saying such behaviour was ungrateful and hampered Spains interests.

"Ferrovial is what it is because it owes everything to this country, and I believe that this decision is not in line with the effort that the country has made in terms of investments," government spokesperson Isabel Rodriguez said.

On Tuesday, Ferrovial announced plans for a reverse merger under which its wholly owned Dutch subsidiary Ferrovial International (FISE) would absorb it and seek listings in Spain, the Netherlands and later the US.

The company, which is part owner of Heathrow airport, has said it sees in the Netherlands a stable legal framework and the potential for lower financing costs due to the country's "AAA" credit rating. Almost 90% of Ferrovial's revenues came from outside of Spain last year.

The plan has been approved by the boards of Ferrovial and FISE, with the operation scheduled for the second or third quarter.

Deputy Prime Minister Nadia Calviño said the decision "seems to go against the interest and image of our country", calling it "incomprehensible" at a time when Spain is attracting more foreign investment than ever.

Calviño said she had called Ferrovial CEO Rafael del Pino to convey her opposition.

The move by Spain’s 13th biggest company by market capitalisation comes in an election year and the conservative People’s Party blamed the Socialist-led government for Ferrovial’s move, citing a "lack of legal certainty" in Spain compared to incentives offered by other countries.

Some companies are attracted to the Netherlands by its sometimes more favourable tax regime, and labour minister Yolanda Diaz accused Ferrovial of engaging in tax dumping.

Ferrovial declined to comment. A person familiar with the matter said the move was not meant to reduce tax payments, adding the company had transferred its international assets to the Netherlands from England in 2018 to keep them within the EU after Brexit.

Ferrovial shares were up 1.1% in afternoon trading.

Reuters 

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