Indra: Ángel Escribano Retains Presidency Amid Government Pressure

Ángel Escribano has retained his position as president of Indra, defying attempts by the Spanish government to remove him, following a tense board meeting on Wednesday. José Vicente de los Mozos will too continue as the company’s CEO, sources close to the discussions have confirmed.

The outcome marks a significant setback for the government, which had sought Escribano’s departure after the collapse of a proposed merger between Indra and Escribano Mechanical & Engineering (EM&E). The government, through the state-owned Sociedad Estatal de Participaciones Industriales (Sepi), had raised concerns about a conflict of interest stemming from the Escribano family’s dual role in both companies.

Sepi, Indra’s largest shareholder with a 28% stake and three board seats, had signaled its opposition to the merger and subsequently issued a statement to the Comisión Nacional del Mercado de Valores (CNMV) outlining its concerns. The Escribano family holds a 14.3% stake in Indra and two seats on the board. Despite the government’s efforts, Escribano reportedly secured sufficient support within the board to remain in his position.

The failed integration was triggered when the Escribano family withdrew from the deal last week, following Sepi’s public expression of reservations. The government had hoped to leverage the conflict of interest as grounds for Escribano’s removal, but this strategy ultimately failed.

Indra experienced substantial growth in the past year, with its stock price increasing by 184%, making it the best-performing company on the Spanish stock exchange. This performance may have contributed to the board’s reluctance to force a change in leadership.

Sources indicate that the government will now reassess its strategy, acknowledging it lacks the immediate support needed to initiate a vote to remove Escribano. A key obstacle lies in securing the backing of independent board members, who reportedly expressed dissatisfaction with the collapse of the merger, having invested significant work through a dedicated ad hoc commission established in July 2025 to study the integration.

Sapa Placencia, holding a 7.94% stake in Indra, has consistently opposed the Escribano family’s influence, although it previously supported the commission’s report which deemed the merger “coherent” with Indra’s strategic objectives.

Adding another layer to the situation, U.S. Investment fund T. Rowe Price Associates disclosed to the CNMV on Wednesday that it had increased its shareholding in Indra to 5.009%, up from 3.7%. Sources suggest the fund supports Escribano, though it does not currently have a seat on the board.

Separately, Indra’s remuneration committee had reportedly drafted a proposal to renew the contract of CEO José Vicente de los Mozos, which expires in June. This proposal predates the recent conflict with Sepi. De los Mozos, with a background at Renault, had been considered a potential interim president should the government succeed in ousting Escribano. His relationship with Escribano is reportedly strained, with De los Mozos stating in February that the EM&E deal would have been completed if Escribano were not president.