Earlier this month brothers Stephen and Peter Bond, sole owners of Scottish airline Loganair, took the company off the market in order to hold out for the “right time and custodian”.
I’ve been keeping an eye on the company since it was put up for sale, hoping it would remain Scottish based.
It’s our only airline after all. It operates profitably and debt free. Why shouldn’t it keep its Scottishness?
A discernible trend has emerged within the Scottish business landscape: a surge in overseas acquisitions of Scottish-headquartered companies. This has sparked debate around the impact of such acquisitions on Scotland’s economy and its future.
The headlines tell the story: Miller Homes acquired by American firm Apollo Funds, Chinese-based Trip.com acquiring Skyscanner, and Edinburgh-headquartered energy consultancy firm Wood Mackenzie sold to New York-based private equity firm Veritas Capital.
But on reflection, does it truly matter where a company’s headquarters reside? After all, many of the companies behind this type of acquisition will often maintain Scottish workforces. Foreign firms are drawn to Scotland’s sector specialisms and steady stream of skilled graduates, making it an appealing destination for deals.
So it’s no wonder that many Scottish businesses have been bought out and are now part of global conglomerates.
But while such acquisitions may provide a boost to Scotland’s economic landscape, they also prompt discussions about the nation’s diminishing presence in the business world.
The initial economic excitement resulting from an overseas acquisition can fade quickly. Companies may reap the initial benefits, but does it pay off in the long run? They must look ahead and weigh up the long-term potential.
Scotland’s decreasing participation in the listed markets – companies listed on the Stock Exchange – is concerning. A vibrant listed company ecosystem is essential for a developed economy, as it provides the capital necessary for growth, job creation, and investment in infrastructure.
When businesses are acquired by overseas buyers, control over investment decisions often shifts away from Scotland, potentially hindering future economic growth.
SSE is a great example of what a listed company can achieve in Scotland. It’s had the access to capital needed to significantly invest in renewable energy infrastructure. Many firms are acquired by private equity before reaching a stage suitable for public listing. I believe this trend has led to a lack of available advisory support for Scottish companies considering floatation.
A buoyant market, access to cheap debt, and undervalued companies are just some factors that have led to this phenomenon in many places around the world.
And Scotland boasts particular appeal thanks to its high concentration of universities, skilled labour force, record for innovation, and comparatively low business rates – all of which make Scottish companies very attractive.
Our ability to attract international investors is something to be proud of – but such opportunities must be carefully considered, ensuring they preserve the interests of its economy and workforce.
Sometimes the appeal of such large investments from foreign private equity can be an unignorable slice of indulgent cake. For Scotland, such cake can be wonderful on occasion but it cannot be the everyday sustenance of our investment diet.
Levelling Up: Time to Put Elgin and Dumfries on the Map
Ask a tourist to tell you what they know about the geographic make-up of Scotland and the answers are fairly predictable.
Most will know Glasgow, Edinburgh and oil capital Aberdeen – and of course the Highlands and Islands will be lauded for magnificent scenery and whisky.
However, how many know of other areas and their redeeming features?
That’s why I think the UK Government’s levelling up money could be a game-changer for our communities.
Seven Scottish towns have £20 million each to transform their high streets and tackle anti-social behaviour over the next decade.
In the Central Belt, Clydebank, Coatbridge, Greenock, Irvine and Kilmarnock will receive deserved cash, and it pleased me to see Elgin and Dumfries on the list too.
While other towns, such as Paisley, may have had their noses put out of joint, it was good to see the money spread around.
On the grand scheme of things, £20m is small change, but it’s a welcome start.
I don’t want to be accused of grandstanding, but why can’t we use the money to help transform Elgin and Dumfries into the capitals of the north and south?
This especially applies to Dumfries. Situated near the border and the M74, it’s a prime location for trade and tourism.
Connecting Dumfries and the surrounding towns and villages to this route with better infrastructure can only see money, visitors and vibrancy pour back into the area again.
It Made Me Laugh
Spain Saves the Day for Scotland
Congratulations to the Scotland team who qualified for Euro 2024 a week past Sunday.
It was another great moment for The Tartan Army under Steve Clarke’s reign – what a business leader that dour taskmaster would make!
However, I couldn’t help but chuckle at us getting the job done in the most un-Scotland way after an impressive run in qualifying.
When it comes to football, particularly in recent years, we Scots are usually left fighting tooth and nail to the bitter end to even get a sniff at a major tournament.
This time, though, we got Spain to do the dirty work. Firstly, and unfortunately, they beat us in controversial fashion, but then dispatched of Norway to send us off to Germany next summer.
Muchos gracias and Herr we go!
It Made Me Weep
Apple of Our Eye – Lost and Forgotten
I’m a lover of cuisines from all over the world.
However, when it comes to quality produce, there’s no disputing the fact local is king.
Sadly, we often see British and Scottish scran overlooked on supermarket shelves.
I read an interesting article denouncing the practice of importing our food, all the while the writer championing the humble Scottish apple.
Varieties I’d never heard of, let alone ate, were quoted, from the White Melrose and the Bloody Ploughman to the fantastically named Scotch Dumpling.
How do you like them apples? I don’t quite know, but it does make me sad that generations of Scots have grown up sampling dumpling only in clootie form.
