Control of taking control in the United Kingdom is relaxed in the context of the industrial strategy
Unlock the publisher’s digest free
Roula Khalaf, editor -in -chief of the FT, selects her favorite stories in this weekly newsletter.
Rules intended to restrict foreign control of British -sensitive British companies must be rewritten within the framework of a broader attempt to stimulate the conditions of companies.
Under the industrial strategy announced on Monday, the ministers announced an examination to make the rules for examining the United Kingdom investment more “predictable and proportional” for companies.
The National Security and Investment Act, or NSIA, has been written to provide a mechanism to civil servants to examine – and finally block – the control of British companies and the assets of foreign states such as China.
The government promised on Monday a “predictable, proportionate and transparent investment screening executive”.
He declared that there would be a 12 -week examination of the law to ensure that the regulatory requirements remained “targeted and proportionate, protecting national security and giving certainty to investors”.
The examination could lead to a change in the list of 17 sensitive zones covered by the current system, while ministers would also soon announce some “new specific exemptions” to the compulsory regime.
The United Kingdom caused new screening powers in January 2022 to respond to security concerns that powers abroad were too easily able to buy British companies with national importance and other industries.
The agreements in 17 sensitive industrial zones – such as advanced materials, artificial intelligence, defense and energy – must automatically be alerted to the authorities.
Since then, the ministers have used the law to block the sale of Newport Wafer Fab – one of the few British semiconductor companies – in Nexperia belonging to the Chinese, despite questions about the importance of the Welsh enterprise for the broad sense.
The proposed merger of British companies in Vodafone and three, owned by CK Hutchison Holdings, based in Hong Kong, also attracted a meticulous examination, before being finally authorized.
The Czech billionaire Daniel Křetínský also forced approval initially to take a 25% stake in Royal Mail, and a second examination of national security for his takeover of 3.6 billion pounds sterling.
“We will continue to update the advice to guarantee investor clarity on the functioning of the law, including decision -making processes,” the government said in its industrial strategy.
“And we will explore the possibilities of bringing greater transparency to the NSIA process and ensuring that it protects national security while minimizing charges and supporting growth.”
Companies that envisage British agreements and their advisers have criticized current as opaque and excessively broad legislation, and complained to have contributed to the slowdown in British mergers and acquisitions.
In March 2024, the government received 847 notifications under NSIA and called 37 of them. This led to 10 voluntarily withdrawn transactions, while five received “final orders” of the ministers imposing conditions on an acquisition to mitigate national security risks.
A government official has said that the law of the law to protect intellectual property in the United Kingdom would not be diluted, since the world has become more dangerous in recent years. He added: “But there could be more openness and clarity on how the act is used to allow companies to work with more confidence.”
