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CNBC: China has ‘zero chance’ of acquiring ‘vulnerable’ Europe tech firms as EU urges states to take stakes

CNBC: China has ‘zero chance’ of acquiring ‘vulnerable’ Europe tech firms as EU urges states to take stakes

red flag
Europe has long been an attractive place for Chinese firms looking to invest and acquire — and the recent bout of weakness in stocks, particularly in key tech firms, could further pique their interest. 
According to one analyst, some of Europe’s key tech firms are “vulnerable” given the market slump, but a top politician in the European Union has urged countries to take a stake in those companies to stop the Chinese takeovers.
The outbreak of the coronavirus in China, which has spread across the world, has led to a slump in share prices around the world. Some European tech firms that are part of industries seen as strategic, such as telecommunications or semiconductors, have taken a hit this year.
Europe is vulnerable because the continent is lagging behind both China and the U.S. in both economic growth and innovation. - Neil Campling
Finnish networking equipment-maker Nokia is down over 9.6% year-to-date. Its rival Ericsson has fallen 2%. Meanwhile, chip firms Infineon and STMicro have dropped 20% and 7.5% respectively. 
“I would say that Europe is vulnerable because the continent is lagging behind both China and the U.S. in both economic growth and innovation,” Neil Campling, head of technology, media and telecoms research at Mirabaud Securities, told CNBC. 
“China has long used a policy of ‘buy it is quicker than building it’ to scale quickly and will certainly be thinking that recent disruptions and lower market values might present opportunities.”


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