EM&E Withdraws From Potential Acquisition by Indra
Indra announced that EM&E has withdrawn from a potential acquisition after state fund SEPI raised conflict concerns. Shares in the defense firm fell 12.3%.
INDRA SISTEMAS SA has confirmed that Escribano Mechanical and Engineering (EM&E) has withdrawn from a potential acquisition by the Spanish defense group. The cancellation follows a period of intense scrutiny over corporate governance and potential conflicts of interest involving the company's leadership.
The proposed deal had faced significant opposition from the state-owned industrial holding company SEPI, which controls a 28% stake in the firm. SEPI recently demanded that Indra address shareholder conflicts before moving forward with the EM&E transaction. The complexity of the deal was rooted in the fact that EM&E is owned by Indra’s chairman, Angel Escribano, and his brother Javier, who is also a board member. Additionally, EM&E is the second-largest shareholder in Indra with a 14.3% stake.
