Wednesday, 21 December 2016

Latest OECD report , shows 22% of the Worlds largest firms are under state Control

Latest OECD report , shows 22% of the Worlds largest firms, are not owned by company share holders, institutions or multi nationals - but are " effectively " foreign Government/s. This of course raises a series of issues around privatization of state owned infrastructure ?. 
It raises an important issue for Governments looking to privatise their public sector or regulated assets, as its not just the first sale, but subsequent on sale that must be looked at. We have already seen some Governments , the latest big one, the sale of Ausgrid , was blocked by the Australian National Government for sale to a Chinese state owned corporation , but sold to a group of Australian pension funds . the sale price was around 17 billion (AD) . 
The book can be read on line , below advice from OECD news bulletin and OCED web site. 

An estimated 22% of the world’s largest firms are now effectively under state control, this is the highest percentage in decades. These firms are likely to remain a prominent feature of the global marketplace in the near future. The upsurge of state-owned enterprises (SOEs) as global competitors has given rise to concerns related to a level playing field.