Spain Takes 3% Stake in Telefonica to Counter Saudi Telecom Co.

Spain has strategically acquired a 3% stake in Telefonica SA in response to Saudi Telecom Co.'s intentions to increase its shareholding in the company. The Spanish government's investment holding, Sepi, purchased 175 million shares valued at about €698 million. This move is aimed at countering the plans of Saudi Telecom Co. to enhance its influence in Telefonica. This development underscores the strategic maneuvering within the telecommunications sector, reflecting competitive efforts and financial implications. The acquisition signals Spain's proactive measures to safeguard its interests and maintain influence in the evolving landscape of telecommunications. The Spanish government's investment in Telefonica exemplifies a proactive response to potential market shifts, reflecting the dynamic nature of strategic business decisions.