Out of GreeceSubmitted by Castlebar Asset Management on October 15th, 2012
The WSJ reported that Greece’s largest business, Coca-Cola Hellenic, is relocating their corporate headquarters to Switzerland and moving their main stock listing from Athens to London. Greece’s economy has been in recessions for the past 6 years and received numerous bailouts from the EU and IMF. This is the latest blow to what has been a very difficult period for Greece. Other companies like Credit Agricole are leaving Greece altogether. They are trying to unload their branches at any price. Coca-Cola Hellenic has operations around Europe and Greece only comprises about 5% of their earnings. Coca-Cola Hellenic’s move is symbolic of the decay going on in Greece’s economy.
This should serve as a warning to other European nations that companies will up and leave if their home countries do not take action to prevent a similar situation like Greece. Ireland and Portugal have already taken bailout money and Spain and Italy are possible candidates for bailouts. Ireland seems unlikely to lose much business give their favorable business environment but Spain has many multinational companies which could be possible candidates to leave. Greece is clearly an extreme case compared to these other nations but this won’t be the first or the last company to up root to a more stable environment.