Spain’s Ferrovial shareholders approve Netherlands move

Ferrovial shareholders approved Thursday a plan to move the Spanish construction giant’s headquarters to the Netherlands despite objections from Spain’s leftist government.

The firm, which manages London’s Heathrow airport, argues the move will give it access to cheaper credit and boost its appeal to equity investors ahead of a planned stock listing in the United States.

But Socialist Prime Minister Pedro Sanchez’s government, which is facing a year-end general election, accuses Ferrovial of seeking to pay less tax, a charge it rejects.

Under a plan first unveiled in February, the firm will change its domicile through a so-called reverse merger, with the group’s Dutch subsidiary absorbing the Spanish holding company.

“It is approved,” the company’s chairman and biggest shareholder, Rafael del Pino, said after the proposal was put to a vote at an annual general shareholders’ meeting.

The government has been fiercely critical of the move, accusing Ferrovial and its billionaire chairman of disloyalty.

The government has noted that the awarding of public contracts to the company, founded by Del Pino’s father in 1952, helped it become one of Spain’s biggest.

It accuses Ferrovial of trying to benefit from lower Dutch taxes on corporate income and dividends.

Ferrovial has justified the planned move of its headquarters on the grounds that it derived more than 80 percent of its revenues last year outside of Spain.

It argues the move will not affect its operations in Spain, where it employs around 5,500 and where it will still pay tax.

Del Pino said the company would pay a “similar” amount of tax in Spain after the relocation as it did, Del Pino added.

“Ferrovial is not leaving Spain,” he added at the start of the annual general meeting.

“Ferrovial will maintain its activity, its jobs, its projects, its investment plan and its listing in Spanish stock markets.”