In recent years Italy has launched a new season of important structural reforms involving economic, financial and administrative initiatives in order to deeply renew the country. In this context, the ambitious new “industrial plan 4.0” 2017 deserves to be mentioned, as a new “tool” aimed to support and attract both foreign and domestic investment.

Alongside these institutional instruments we are witness to the spontaneous, increasing and overwhelming growth of a new private-investment-age, in which a main role is played by, among others, APAC-region companies.

Both venture capital and corporate consolidations utilized to facilitate foreign investment

In particular, investors from the East seem to move in two directions: on the one hand allocating resources to the “new economy” businesses by mean of venture capital, on the other hand still using the classic and chartered path of corporate consolidation.

The first way runs through accelerators, incubators, technology parks and advanced legal solutions in support of the new initiatives including venture equity investment, crowdfunding and work for equity.

The second way is strongly related to mergers and acquisitions. Never before have Italian companies – rich in technology and renowned for the quality of their products – so often used strategic links with Asian Pacific partners to increase the value of their assets. What is increasingly happening now instead: Efficient resources rationalization powered by equity operations.  

The symbol of Italy’s economic Renaissance is the city of Milan

Milan represents an Italy that is projecting herself into the third millennium conscious of its long tradition and excellence in the productive and technological sectors, not forgetting its ancient global vocation.

Notably, Turin, Rome, Florence, Naples and Genova, to name few, are also taking up the challenge to contest the primacy of Milan.

The important role being played by massive investment from APAC

Chinese investment in Italy has risen from 5.5 bln USD in 2010 to 18 bln USD in 2015, but outstanding deals also coming from Japan, Indonesia, Australia and India.

Interestingly enough, Italy represents the second European country target for Chinese investments in 2015: from energy to banking, food and beverage to automotive and sports, the areas covered by this new “gold investment age” are very different.

Italy’s solid legal system is helping to attract foreign investment

A solid Italian legal system is proving to be a crucial actor in helping investors avoid significant risk to their businesses. In particular, the rule of law and the freedom of contract provide respectively significant and adaptable tools for investors to operate optimally and profitability. To complete the picture, it is worth mentioning the great expertise of the Specialized Corporate Courts which proactively apply the principles of economic freedom and competition in compliance with EU and international treaties rules.

Overall — something very good is happening in Italy’s economy — and APAC is confirming itself a key player.

Posted by Andrea Bernasconi

Andrea is a Lawyer with Studio Previti Associazione Professionale - Corporate and M&A Department

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s