Deutsche Bahn-Arriva Acquisition: Another Excuse For Protectionism?

Deutsche Bahn's GBP1.5bn bid for Arriva seemed to occur at just the right time for the UK Labour Party to unite the electorate around the theme of economic nationalism. After Kraft-Cadbury, here comes another major foreign bid, this time for a UK infrastructure asset. The Kraft-Cadbury deal gave rise to Lord Mandelson's proposals for a reform of UK takeover law, which was watered down and included in the Labour Party's election manifesto. The Deutsche Bahn-Arriva deal gives the government another opportunity for anti-foreign takeover rhetoric. However, as we explain below, the deal exemplifies precisely why such rhetoric is unjustified and

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