Wanna Argument?
Does it matter if foreign companies buy UK businesses?
Is the Mini British or German - Discuss! © iStock.com
Some UK firms may be household names, but are they really 'our' businesses?
They are certainly important for some key stakeholders:
- Workers employed in the firms
- Communities in which they're located
There is also the importance culturally of being identified as a 'British' company.
But was it ever the case in modern times that these firms were really under British 'control'? Many observers doubt this very much, citing some compelling reasons:
- Even companies controlled by British directors are not necessarily under the ownership of UK individuals and institutions; companies are owned by their shareholders
- Shares in British-based PLCs, especially those of large corporations, are traded publicly on the Stock Exchange
- Anyone (individual or institution) can buy shares if they are prepared to pay the market price (share price)
- Boards of Directors are legally bound to look after the interests of their shareholders, even if this means recommending to them a bid for the company from an overseas firm
- Many large UK firms do the majority of their business in overseas markets. If they are not serving UK customers much at all, are they really British?