Britain to prevent foreign companies buying up strategic assets in “malicious” takeovers – UKMALAYALEE

Britain to prevent foreign companies buying up strategic assets in “malicious” takeovers

Thursday 12 November 2020 7:10 AM UTC

LONDON Nov 11: Britain on Wednesday unveiled plans for new powers to prevent foreign companies snapping up strategic assets in “malicious” takeovers that are deemed to threaten national security.

The U.K. government said that its new National Security and Investment Bill will “protect (the) U.K. from malicious investment” and strengthen its ability to investigate and intervene in mergers, acquisitions and other types of deals.

The new powers come as increasing Chinese investment has sparked calls from lawmakers for Prime Minister Boris Johnson to take a stronger stance on Beijing.

The draft Bill is aimed at updating a 20-year-old law that is no longer sufficient to tackle modern threats, according to a statement from the Department for Business, Energy and Industrial Strategy.

The Bill, which will be introduced before Parliament on Wednesday, will compel companies to inform the government of merger and acquisition activity in sensitive sectors such as defence, energy and transport.

“The U.K. remains one of the most attractive investment destinations in the world and we want to keep it that way,” Business Secretary Alok Sharma said in a statement. “But hostile actors should be in no doubt — there is no back door into the UK.”

“This Bill will mean that we can continue to welcome job-creating investment to our shores, while shutting out those who could threaten the safety of the British people.”

The Bill — which names 17 strategic areas, including artificial intelligence, nuclear power, robotics and the space industry — mirrors similar measures in Australia, Italy, France and the U.S.