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FDI:  Foreign Takeovers, A Consequence of Deficits

Since 1980, foreign companies have gained control of: 

  • Nearly 100 percent of all U.S. telephone exchange and billing services

  • Nearly 100 percent of the U.S. consumer electronics industry

  • Nearly 100 percent of the U.S. photo imaging industry

  • Nearly 100 percent of the U.S. luxury good manufacturers/retailers

  • The majority of the U.S. book and magazine publishing industry

  • The majority of the U.S. music recording industry

  • The majority of the U.S. heavy truck manufacturers

  • The majority of U.S. tire manufacturers

  • Nearly half of the major U.S. oil & gas companies

  • Large segments of the U.S. food distribution industry

  • Large segments of the U.S. water distribution utilities

  • Large segments of the U.S. major motion picture industry

    The list could go on.  After more than 27 years and tens of thousands of transactions, large segments of the U.S. economy across a broad range of industries and categories are now in foreign hands.  Estimates suggest nearly 28 million Americans work for companies domiciled and headquartered outside the U.S..

     It is important to recognize, with every takeover of a U.S. company by a foreign company also goes control and rights to the land, buildings and facilities, financial assets, employee 401k's and pensions, patents, R&D, licensing rights, insider information, market share, and the unique history and the culture of that U.S. company.  And never lose sight of the strongly positive correlation between our massive U.S. current account deficit, largely accounted for by our massive merchandise trade deficit, and increased control of U.S. assets by foreign nationals. 

     This long developing reality is deserving of much closer scrutiny by all of us as citizens, and certainly by our national policy makers. 

    Here is just a partial list of well known American companies/brands now controlled by foreign companies, followed by the name of the acquiring company and the country in which it is headquartered:   

  1. Adams Candy (confectionary, foods): Cadbury Schweppes, England

  2. Adolph Coors (brewer): Molson, Canada

  3. Aetna (financial services): ING, Netherlands

  4. Airtouch (telecom):  Vodafone, England

  5. American General Corp. (insurance): Prudential, PLC, England

  6. American Water Works (utility): RWE, Germany

  7. Amoco (oil&gas): British Petroleum, England

  8. Anheuser-Busch (brewer): InBev, Belgium

  9. Atlantic Richfield (oil&gas): British Petroleum, England

  10. Bankers Trust (financial services): Deutsche Bank, Germany

  11. Ben & Jerry's (foods): Unilever, England & Netherlands

  12. Bestfoods (foods, distribution): Unilever, England & Netherlands

  13. BFGoodrich (tires): Michelin, France

  14. Carolco Pictures (movie studio): Canal Plus, France

  15. Chris Craft Communications (tv&radio): Fox News, Australia

  16. Columbia Records (music): Sony, Japan

  17. Columbia Studios (movie studio): Sony, Japan

  18. Curad (health care): Belersdorf, Germany

  19. Detroit Diesel (engines): Daimler Benz, Germany

  20. DHL (parcel delivery): Deutsche Post, Germany (state owned)

  21. Dial (soap products): Henkel, Germany

  22. DLJ (financial services): Credit Suisse First Boston, Switzerland

  23. Dreyers Ice Cream (foods): Nestle, Switzerland

  24. Dupont Photo (semiconductors): Topan, Japan

  25. Earnst & Young (consulting): Cap Gemini, France

  26. Equilon Enterprises (oil & gas): Royal Dutch Shell, Anglo-Dutch

  27. Firestone Tire Company (tires): Bridgestone, Japan

  28. First Boston (financial services): Credit Suisse, Switzerland

  29. Freightliner (heavy trucks): Daimler Benz, Germany

  30. GE Appliances (home appliances):  LG, South Korea

  31. Getty Marketing (gas stations): Lukoil, Russia

  32. Global Crossing (telecom): Hutchinson Wampoa, China

  33. Haagen-Daz (foods): Nestle, Switzerland

  34. Harcourt (publishing): Reed Elsevier, England

  35. Harper Collins (publishing): News Corp., Australia

  36. Hughes Electronics, Direct TV: (satellite TV) News Corporation, Australia

  37. IBM Personal Computers: (computers) Lenovo, China

  38. Jenny Craig (weight mgt):  Nestle, Switzerland

  39. Jiffy Lube (drive in auto service): Royal Dutch Shell, England/Netherlands

  40. John Hancock (insurance):  Manulife, Canada

  41. Kleinwort Benson (financial services): Dresdner Bank, Germany

  42. Lean Cuisine (foods):  Nestle, Switzerland

  43. Lehman Brothers (financial services): Barclays Capital, UK

  44. Lucent Technologies (communications):  Alcatel, France

  45. Lycos (internet service provider): Terra Networks, S.A., Spain

  46. Mack Truck (heavy trucks): Renault, France

  47. Magnavox (electronics): Phillips, Netherlands

  48. Maybelline (cosmetics): L'Oreal, France

  49. Maytag (appliances): Electrolux, Sweden

  50. Metro-Goldwyn-Meyer, MGM (movie studio):  Sony, Japan

  51. Michigan National Bank (financial services): ABN Amro, Netherlands

  52. Miller Brewing Company (beer): South African Breweries, South Africa

  53. Motiva Enterprises (oil & gas): Royal Dutch Shell, Anglo-Dutch

  54. National Discount Brokers (brokerage): Deutsche Bank, Germany

  55. Nicholas Applegate (financial services): Allianze, France

  56. Norelco (appliances): Phillips, Netherlands

  57. Pacificorp (power generation): Scottish Energy Corp., Scotland

  58. Paine Webber (financial services): Union Bank of Switzerland, Switzerland

  59. Penzoil-Quaker State (lubricants): Royal Dutch Shell, England/Netherlands

  60. PIMCO (financial services): Allianze, France

  61. Pioneer Investments (financial services): Unicredito, Italy

  62. Putman Investments (financial services): Power Financial Group, Canada

  63. New York Plaza (hotel): Elad Properties, Israel

  64. Ralston Purina (pet foods): Nestle, Switzerland

  65. Random House (publishing): Bertelsman, Germany

  66. RCA Corporation (electronics): TCL, China

  67. Republic National Bank (financial services): HSBC, England

  68. Sara Lee Corporation (foods): Royal Ahold, Denmark

  69. Scott Paper (paper products): Kimberly Clark, England

  70. 7-11 (foods): 7-11 Japan, Japan

  71. Silicon Valley Group (chip makers): ASML, Netherlands

  72. Slim Fast (foods): Unilever, England, Netherlands

  73. Smithkline Beckman (pharmaceuticals): Glaxo Welcome PLC, England

  74. Snapple (beverages): Cadbury Schweppes, England

  75. Stop & Shop (foods, distribution): Royal Ahold, Denmark

  76. Twentieth Century Fox (movie studio): News Corporation, Australia

  77. United Defense Industries, Inc (military contractor): BAE Systems, England

  78. United California Bank (financial services): Banque Paribas, France

  79. United Water Resources (utility): Suez, France

  80. USFilter (utility): Vivendi, France

  81. Verio (internet service provider): Nippon Telegraph and Telephone, Japan

  82. VoiceStream (telecom): Deutsche Telekom, Germany (state owned)

  83. Wasserstein & Parrella (financial services): Dresdner Bank, Germany

  84. Windam Hill Productions (movie studio): Bertelsman, Germany

  85. White Trucks (heavy trucks): Volvo, Sweden

  86. Zenith Corporation (electronics): Lg Electronics, South Korea

 

 

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