Foreign Takeovers - Brain Drain or Brain Gain.ppt

Foreign Takeovers - Brain Drain or Brain Gain?Case of FinlandOslo, 29th January 2004 Content Broad overview on trend and current situation of inward FDI and foreign ownership in Finland Research focusing on impacts of FDI and foreign takeovers of nationally-owned companies First observations from research Historical trends Historically level of FDI by foreign firms has been low in Finland. Finns neither really tried to attract foreign direct investment inflows. However, FDI inflows began to increase in the 1980s and the increase continued in the 1990s. Explanations: reflects global development - FDI flows increased substantially since the early 1980s and a small part of it found its way to Finland. attractiveness of Finnish companies increased because of improvement in technological and knowledge levels of Finnish manufacturing firms in past few decades. mergers and acquisitions in the 1980s and 1990s much more popular method of foreign direct investment than greenfield investment. atmosphere in Finland has changed: since the early 1990s FDI inflows are encouraged: Invest in Finland Bureau founded in 1992 and remaining restrictions on FDI inflows abolished in 1993. Direct investments to and from Finland in 1993 - 2002 (per cent of GDP) Non-residents holdings in companies listed in HEX stock exchange (as a percentage of total market capitalisation Jan 1994 - Aug 2003) The share of foreign-owned enterprises of Finnish enterprises in 1994-2001, % Foreign-owned enterprises in Finland by the owner country in the year 2001 Some recent acquisitions in Finland General Electric completed in Oct 2003 the acquisition of Instrumentarium, a leading Finnish medical technology company. German-based IVG Immobilien AG purchased in Oct 2003 majority of the shares in Polar Kiinteist?t Oyj, a Finnish real-estate company. US-based AGCO Corporation bought in Sept 2003 KONE Corporations tractor business Valtra and the subsidiary Sisu Diesel. Hon Hai Precision Industry Co.,Ltd (