MADRID – Fourteen months after his appointment, Ángel Escribano resigned on Wednesday as chairman of defense and technology giant Indra after weeks of growing friction with the Spanish government.
“The events of recent weeks have created a situation that, in addition to personal injury, threatens to undermine the goals that have driven me since day one and that I consider essential to the future of Indra and the industry,” Escribano said in a letter to Indra’s board.
“I cannot allow my continued presence to jeopardize the stability of the company,” he added.
At the heart of the dispute is a stalled merger between Indra and smaller defense firm Escribano Mechanical & Engineering (EM&E), touted by both companies as key to consolidating Spain’s growing defense sector, but which has raised serious conflict-of-interest concerns.
Indra’s chairman, Escribano, is also the founder and co-owner of EM&E, along with his brother Javier. EM&E is the largest in Indra private shareholder, with 14.3% of the shares, giving the brothers significant influence over the proposed merger.
after local media reported earlier Wednesday that Escribano would resign, Indra’s shares on Spain’s Ibex index fallen by about 6%.
Escribano was appointed by the government of Pedro Sánchez in January 2025 to lead the defense firm, which specializes in radar and drone technology. Early on, he signaled plans to merge with his artillery-focused company EM&E, raising concerns that he was effectively facilitating a takeover of his firm.
Spain’s Socialist-led government initially backed the deal through its stake in Indra through state fund SEPI, but has since withdrawn its support.
In mid-March, SEPI, which holds a 28% stake in Indra, publicly raised concerns about a conflict of interest.
Pressure from the Spanish government to remove Indra’s chair sinks the union
MADRID – Spanish defense firm Escribano Mechanical & Engineering (EM&E) withdrew from a…
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SEPI president Belén Gualdá González then demanded in a statement that the conflict be “resolved” so that the union can continue, hinting that Escribano may have to step down to avoid potential legal liability.
According to some local reports, the turnaround is likely to mirror that of the government SEARCHING for a more politically loyal candidate to lead the company.
Less than a day after Gualdá’s comments, EM&E withdrew from merger negotiations during a special board meeting, saying current circumstances did not allow it, ending an operation closely watched by Spain’s national defense and political landscape.
Indra has been a major beneficiary of the Spanish government defensive thrust to increase its military spending by more than 2% tenders worth billions of euros allocated to joint ventures with EM&E.
(aw)
