The British should start getting used to their domestic companies, even those with a long history, being taken over by Polish ones, because it is a sign that the Polish economy is getting stronger, writes the Daily Telegraph on Sunday. The newspaper follows the announcement made this week acquisition of the 180-year-old Thomas Cook travel agency – which was recently in Chinese hands – by the Polish company eSky. He emphasizes that this is not an isolated case, as it is yet another example Poundland chain of stores owned by Polish company Pepco.
“The UK spends a lot of time worrying about competition from Germany and France, but the reality is that we may be looking in the wrong place. The next wave of corporate acquisitions will likely come from Poland – because increasingly that’s where the money is,” writes the Daily Telegraph.
Will Poland overtake Spain and Italy?
The newspaper adds that what is more interesting than the Thomas Cook transaction itself is that Polish companies are starting to acquire companies with an established position in the world. It notes that There are now six startups in Poland with valuations exceeding $1 billion., one fortune the richest Polish businessman, Michał Sołowow, amounts to almost 7 billion dollars. And while there has never been a Polish takeover in Britain as high-profile as the Czech Daniel Kretinsky’s finalised purchase of Royal Mail, its success reminds us that acquisitions can be made just as easily by companies from countries that were part of the bloc just over 30 years ago as from traditional European powers.
“It’s not hard to understand what’s going on. It may not be widely appreciated yet, but Poland is an increasingly rich country. It is expected this year the economy will grow another 3%.which is one of the fastest rates of growth among all major European economies. It has grown steadily over the past 25 years and is now eight times larger than it was when communism fell. With 36 million inhabitants, it is the largest of the countries that were once satellites of the Soviet Union and are now the sixth largest economy in Europe and fifth in terms of purchasing power. It wouldn’t be a big shock to anyone if this were to happen in the next few years surpassed Spain, and perhaps after that Italy, mired in stagnation and zero growth,” notes the Daily Telegraph.
Poland’s strengths
He adds that there is no reason to expect a slowdown in the near future. Poland has low taxes compared to Europe – the corporate tax rate is only 19%. and it is very inferior to that of Germany, France or Great Britain, and the maximum personal tax rate is relatively low, which encourages work and savings. In addition, Poland ranks high skilled labor, and early 21st century emigration is increasingly beginning to return to the country (not just from Britain) as more opportunities open up and skills acquired abroad are increasingly valued.
Buying Thomas Cook is just the beginning
The Daily Telegraph stresses that a certain perspective must be maintained and no one should expect any of the Polish start-ups to take over Unilever or GSK in the near future, because they are not yet that size, and building capital markets that can match the size and experience in Frankfurt, Paris or London will take many more years.
“Yet Thomas Cook purchase it is without a doubt a foretaste of what is to come. Major acquisitions are initiated in countries that are growing rapidly, where wealth is created and where companies can retain sufficient profits to allow them to expand aggressively. We have seen this in recent years as Chinese and Indian conglomerates have become global players, and in the coming years we will also see it in deals originating in the former Soviet Union. Polish companies to get money for expansion across the continent – and could easily outpace overburdened and overregulated Western rivals over the next decade,” he predicts.
