Week Ahead (18 November)

W/C Monday, 18 November – European Parliament groups to negotiate a breakthrough over the confirmation of Executive Vice President nominees

This week will be crucial for the timing and the composition of the new European Commission. The European Parliament’s political groups will attempt to resolve this week’s stalemate over the confirmation of six Executive Vice President nominees and Hungary’s commissioner-designate Oliver Varhelyi.  The delays, largely caused by political maneuvering threaten the foreseen timeline for the new European Commission to take office on 1 December.

Earlier this month, the Parliament approved 19 of Ursula von der Leyen’s 26 commissioner-designates. However, tensions arose last week during the confirmation process for the EVPs: Teresa Ribera (Spain, S&D), Raffaele Fitto (Italy, ECR), Kaja Kallas (Estonia, Rewew), Stéphane Séjourné (France, Renew), Henna Virkkunen (Finland, EPP), and Roxana Minzatu (Romania, S&D). The hearings concluded on 12 November, but the final confirmation meetings were postponed due to unresolved political disputes.

More specifically, Ribera’s candidacy has been withheld by the European People’s Party (EPP), which insists she must first answer questions in the Spanish Parliament regarding her handling of recent deadly floods in Valencia in her capacity as the country’s minister for ecology and deputy prime minister. Ribera is likely to face the Spanish Parliament on Wednesday, potentially unfreezing EPP’s green light. The Socialists have blocked Fitto, vice-President Commissioner designate for Cohesion Policy nominated by Italy’s Prime Minister Giorgia Meloni, in part because of his affiliation with the right-wing European Conservatives and Reformists (ECR) group. Meloni strongly defended her nominee, accusing the Socialists of undermining Italy’s rightful place in the Commission, as they questioned the wisdom of elevating an ECR representative to such a high-ranking position (EVP). Meanwhile, the EPP has refused to back down, asserting that Fitto should not be held hostage for the political infighting.

These ongoing disputes have caused friction in the long-standing pro-EU coalition of EPP, S&D, and Renew Europe in the European Parliament, with each side accusing the other of politicising the process. A coordinator meeting behind closed doors between the political groups is scheduled to take place on Wednesday with the aim of reaching a breakthrough on the EVP nominees. If Ribera and Fitto cannot secure approval through committee deliberations, they may face additional written questions or, in worst-case scenario, a direct secret ballot requiring a simple majority of MEPs.

On 27 November, the European Parliament is set to hold a plenary session in Strasbourg to vote on the entire College of Commissioners. This vote will determine whether von der Leyen’s leadership team can start on 1 December as planned. However, this week’s negotiations will be crucial: a rejection of one or more nominees might force von der Leyen to re-nominate candidates, delaying the Commission’s starting date until 2025.

W/C Monday, 18 November – European Commission likely to announce decision on Carlyle's $3.8 billion acquisition of Baxter’s kidney care unit Vantine

This week, the European Commission is likely to announce its decision on Carlyle Group’s proposed acquisition of Vantive, the kidney-care unit of medical device manufacturer Baxter International, for $3.8 billion.

In August, Carlyle Group, a leading global private equity firm with $435 billion in assets under management, struck the deal to acquire Vantive as part of its healthcare-focused investment strategy. Partnering with Atmas Health, its healthcare investment platform, Carlyle plans to transform Vantive into an independent global business, leveraging its market-leading position in kidney care. Vantive is a major player in the medical devices sector, generating $4.5 billion in revenue in 2023 and employing over 23,000 people worldwide. According to the announcement of the deal, Carlyle aims to support Vantive’s strategic vision, enhancing its growth and operational focus following its carve-out from Baxter.

The acquisition also marks a key step for Baxter in its effort to streamline its portfolio and reduce its debt, which stood at $13.8 billion at the end of 2023. Proceeds from the Vantive sale will add to Baxter’s ongoing efforts to strengthen its balance sheet, following the divestment of its biopharma unit in 2022 and the $10.5 billion acquisition of Hill-Rom the same year.

Pending regulatory approval, the transaction is anticipated to close by early 2025. The Commission’s decision, likely to be announced in the coming days, will play a crucial role in determining the timeline for the acquisition’s completion and Vantive’s transition into an independent entity.

W/C Monday, 18 November – European Commission likely to announce decision on IGZ’s purchase of a controlling stake in Picard 

Also this week, the European Commission is expected to announce its decision on the acquisition of a controlling stake in Picard Groupe by Invest Group Zouari (IGZ).

France-based Picard Groupe, a leading frozen food retailer in Europe, is undergoing a significant ownership change. IGZ, which already holds a 45% minority stake in Picard, will acquire Lion Capital’s 52% majority stake for approximately €948 million, becoming the controlling shareholder. Picard’s management team is expected to retain a minority interest in the company. German-based IGZ, is owned by the Zouari Group (50.6%) and asset-management firm ICG (49.4%). With the proposed deal, it aims to leverage Picard’s strong brand presence to drive growth in the frozen food market.

Filed under the EU’s simplified merger procedure on 28 October, the transaction is provisionally scheduled for a decision by 25 November. However, a decision is likely to take place as early as this week.

Tuesday, 19 November – Hungarian Presidency to unveil first Council compromise proposal on the EU’s revised FDI screening rules

On Tuesday, the Hungarian Presidency of the EU Council is set to present member state ambassadors the first compromise draft for its proposed reforms to Foreign Direct Investment (FDI) screening regulations.

Announced by the European Commission in January, the reform could mark a significant step forward in the EU’s economic security strategy by mandating FDI screening mechanisms in all EU member states. Currently, under the existing rules, the screening regimes are inconsistent across the bloc, with only a subset of countries, namely Italy, France, Germany, Spain, Belgium, and Sweden, screening intra-EU investments, mainly in sensitive sectors such as defence and critical infrastructure.

The revised proposal emphasises harmonisation by requiring all member states to establish screening mechanisms within 15 months of the revised rules entering into force. The proposed reforms significantly broaden the sectoral and procedural scope of screening regimes. The reforms target investments in projects of Union interest, such as the European Space Programme, and economically critical sectors, including artificial intelligence, semiconductors, critical medicines, and financial services. Notably, it includes a provision to extend EU screening to investments by EU investors that are ultimately controlled by individuals or business from a non-EU country. This would address gaps in the existing regulatory framework, enabling the scrutiny of foreign-backed transactions conducted through EU-based entities.

Nevertheless, there are also fears that the proposed changes may lead to increased administrative burdens for investors and member states. Furthermore, some more economically liberal-minded member states may express concerns about potentially distorting the principles of the single market in the name of enhanced economic security. Therefore, the release of the compromise proposal by the Council on 19 November will offer a clearer picture of the member states’ positions on these reforms. In parallel, the European Parliament’s Industry Research and Energy (ITRE) Committee is discussing its own position on the proposal.