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| Government to protect key British firms from foreign takeovers that raise national security concerns | |
| (35 minutes later) | |
| Key British companies would receive protection from foreign takeovers where deals raise national security concerns, under new proposals announced by the Government on Tuesday. | Key British companies would receive protection from foreign takeovers where deals raise national security concerns, under new proposals announced by the Government on Tuesday. |
| Greg Clark said the new rules will allow the state to take action when deals involve companies that "design or manufacture military and dual use products, and parts of the advanced technology sector". | Greg Clark said the new rules will allow the state to take action when deals involve companies that "design or manufacture military and dual use products, and parts of the advanced technology sector". |
| Ahead of a consultation on the plans, Mr Clark said: "It is right that every so often the Government reviews its mergers regime to close loopholes where they arise and this is what these proposals do in the area of national security. | Ahead of a consultation on the plans, Mr Clark said: "It is right that every so often the Government reviews its mergers regime to close loopholes where they arise and this is what these proposals do in the area of national security. |
| "No part of the economy is off-limits to foreign investment and the UK will continue to be a vociferous advocate for free trade and a magnet for global talent." | "No part of the economy is off-limits to foreign investment and the UK will continue to be a vociferous advocate for free trade and a magnet for global talent." |
| Currently, the Government can only intervene in mergers involving companies with a UK turnover of more than £70m, or where the share of UK supply increases to 25 per cent or over. | Currently, the Government can only intervene in mergers involving companies with a UK turnover of more than £70m, or where the share of UK supply increases to 25 per cent or over. |
| The proposals aim to "close these loopholes" to enable "greater scrutiny of foreign investment in a changing market". | The proposals aim to "close these loopholes" to enable "greater scrutiny of foreign investment in a changing market". |
| If enacted, the rule change will see the Government lower the threshold whereby ministers can scrutinise investment to businesses with a UK turnover of more than £1m, and remove the 25 per cent requirement. | If enacted, the rule change will see the Government lower the threshold whereby ministers can scrutinise investment to businesses with a UK turnover of more than £1m, and remove the 25 per cent requirement. |
| The changes will widen the scope of current powers to include smaller businesses. | The changes will widen the scope of current powers to include smaller businesses. |
| The Government is also consulting on longer-term proposals that will allow for better scrutiny of transactions that may raise national security concerns - this could include increasing risks of espionage, sabotage or the ability to exert inappropriate leverage. | The Government is also consulting on longer-term proposals that will allow for better scrutiny of transactions that may raise national security concerns - this could include increasing risks of espionage, sabotage or the ability to exert inappropriate leverage. |
| Additionl reporting by PA | Additionl reporting by PA |