Are Nowi’s chips as strategic as yogurt?

When rumors circulated in 2005 that PepsiCo wanted to take over dairy company Danone, French politicians tumbled over one another to defend national interests. A bid never materialized, to the dismay of the free-trade evangelists in London, The Hague and Brussels. In those circles, ‘strategic yogurt’ became synonymous for French protectionism.

These days, no one is making fun of the French anymore. Industrial policy is at the top of agendas in Brussels and European capitals, including legislation to block takeovers. So too in the Netherlands. On June 1, the Security Screening of Investments, Mergers and Acquisitions Act (Vifo Act) went into effect, enabling the government to scrutinize investments in critical sectors and/or sensitive technologies for threats to national security. Although not specifically targeted at any one country, it’s no secret that the new rules were introduced primarily with China in mind.