Monitor funds' influence on German business - monopolies body

Blackrock Capital Investment

20/09/2016 12:21

BERLIN, Sept 20 (Reuters) - Germany needs to keep a closer 
eye on the influence of funds and institutional investors on 
German business because they may be distorting competition, the 
head of the Monopolies Commission said on Tuesday.     
    Large investors, such as U.S. wealth manager Blackrock 
 BKCC.O  or Norway's sovereign wealth fund, have stakes in 
numerous German companies that are partly in competition with 
each other, Achim Wambach said in Berlin. 
    This trend is especially pronounced in sectors such as 
computer manufacturing, optical and electronic equipment, as 
well as machinery and vehicle construction, he said. 
    "There is the danger that competition could be impeded," 
said Wambach, who is chief of the independent commission that 
advises the government on competition policy. There are already 
initial indications of distorting effects on competition, he 
added. 
    Wambach said Germany's cartel office should take a close 
look at drugmaker Bayer's  BAYGn.DE  $66 billion takeover of 
U.S. seeds company Monsanto  MON.N , since Blackrock has 
holdings in both companies. 
    "The cartel office should at least cast an eye on it," he 
said. 
    On the whole, however, there was no reason for competition 
concerns since the concentration of companies in Germany had 
fallen, he added.   
    In addition, the interrelationship of its 100 biggest 
companies had also declined, he said, referring to multiple 
mandate holders in supervisory boards and mutual capital shares. 
 
 (Reporting by Rene Wagner; Writing by Caroline Copley; Editing 
by Tom Heneghan) 
 ((Caroline.Copley@thomsonreuters.com; +49 30 2888 5214; Reuters 
Messaging: caroline.copley.thomsonreuters.com@reuters.net)) 
 
Keywords: GERMANY COMPETITION/INVESTORS