Spain Weighs Placing Conditions on Saudi’s Telefonica Stake Bid

  • Provisions could include limits on asset sales and dividends
  • Framework likely similar to one applied to Naturgy purchase

The headquarters of Telefonica SA in Madrid, Spain.

Photographer: Paul Hanna/Bloomberg
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The Spanish government is considering imposing conditions on Saudi Telecom Co.’s acquisition of a 9.9% stake in Telefonica SA similar to those placed on previous deals, such as limits on asset sales and dividend payments, according to a person familiar with the matter.

The provisions may include some of those applied in 2021 to the purchaseBloomberg Terminal of 23% of Naturgy Energy Group SA by Australian fund IFM Global Infrastructure, said the person, who asked not to be identified discussing confidential information.