The cost of energy crisis throwing up a lot of talk of nationalising private companies.
I understand that some companies have always been a part of government (example of Scottish Water) but how do we “take them back” if they are owned by shareholders? In my mind it’s like a compulsory purchase (UK wording) and the government buys all the shares at market rate…
Can someone ELI5?
In: 1
This sort of government taking, sometimes called eminent domain when it’s applied to real estate – where the government takes some land to build a park, almost always involves lawsuits over the price. Government appraisers say the business is worth £X and the business owners think the price should be £5X. eventually the courts decide. In some banana republic the government might decide the business is worth £1, and get the courts to back them. This sort of nationalization tends to really cut investment for years.
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