U.K. to ramp up powers to block takeovers by foreign companies
by The Associated Press
Citing national security concerns, Britain issues a proposal to help stem foreign buyers
LONDON – The British government plans to expand its powers to block takeovers by foreign companies that pose national security concerns.
Proposals unveiled Tuesday would allow the government to review deals in a wide variety of industries in which a foreign buyer acquires as little as 25 per cent of a company. Britain and other NATO nations are worried about foreign governments, particularly China, using takeovers to gain access to new technology.
Business Secretary Greg Clark says the proposals “will ensure we have the appropriate safeguards to protect our national security whilst ensuring our economy remains unashamedly pro-business and open to high levels of foreign investment in the future.”
China’s foreign ministry spokesman, Geng Shuang, says that the U.K. should be sending “positive messages in safeguarding the rules-based international order” and opposing “protectionism.”