Despite government pressure, Spain’s Ferrovial shareholders approve Netherlands move

OVIEDO, Spain

Shareholders of the Spanish construction company Ferrovial voted on Thursday to relocate the headquarters from Madrid to the Netherlands.

The vote, highly anticipated after the company’s announcement that it wanted to leave Spain, was met with uproar.

Members of Spain’s progressive government accused the company of trying to dodge taxes in Spain and of betraying the country that helped it become successful.

Ferrovial was born in Spain under the Franco regime in 1952 and has grown through numerous large government contracts.

However, the company, which, manages several airports around the world, a highway near Toronto and built the Farringdon Station in London, has grown well beyond Spain.

During the shareholders’ meeting on Thursday, its chairman, Rafael del Pino, flat out denied that changing its domicile to the Netherlands is due to “fiscal motives.” Instead, he insisted it would help the company list on US markets.

But Spain’s government has contested that point, too.

“The reason the company gives for moving doesn’t coincide with the law … from here, you can list on the US markets,” said Treasury Minister Maria Jesus Montero on Thursday. Experts, however, point out that no company has yet listed in Spain and the US.

Speaking to Antena 3, Montero justified the government pressure on Ferrovial to stay, saying the move is sending “dangerous” and misleading signals to other companies.

On the other hand, the government pressure has been harshly criticized by members of the business community and the political opposition.

During the meeting, Belgian shareholder Jean Pierre Paelink accused the government of “attacking” the European right of freedom of movement and private property.

Meanwhile, del Pino also insisted that Ferrovial will maintain the same amount of activity, employment and investments in Spain. Despite the move, it will also keep paying taxes.

“Spain has always been our country, and we aren’t renouncing that,” he added.

In the initial reaction to the shareholder’s vote, Spain’s Economy Ministry said the government respects the company’s decision.