UK to expand powers to block foreign takeover deals

This post was originally published on this site
© Reuters. UK to expand powers to block foreign takeover deals© Reuters. UK to expand powers to block foreign takeover deals

LONDON (Reuters) – Britain plans to strengthen its powers to block or intervene in the foreign purchase of any company that could affect national security, it said on Monday.

Currently the British state can intervene in the foreign takeover of any company that plays a role in national security, the provision of media plurality or the stability of the financial system.

But setting out its new legislative agenda in a Queen’s Speech on Monday, the government said it planned to be able to intervene in deals of any size in any sector that could pose a risk to national security.

Under the plan, a notification system allowing businesses to flag to government a transaction with potential security concerns will be introduced.

The government will then be able to add conditions to the transaction, block it or add sanctions for non-compliance. Companies will be able to appeal.

The move is designed to tackle national security risks wherever they arise and reflects the fact a small company with expertise in cyber could be as important as a major defense company.

Britain has one of the most open economies in the world but it does ask for a thorough examination of the impact of certain deals and it is currently reviewing acquisitions of satellite group Inmarsat (L:) and defense company Cobham (L:).

While Prime Minister Boris Johnson does not have a majority to pass bills in parliament, the new legislation does indicate how his party will seek to govern if it holds an election later this year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.