Britain Is Preparing A Law To Protect Strategic Companies

Britain Is Preparing A Law To Protect Strategic Companies

The British government unveiled a plan of new powers to prevent foreign companies from taking British companies hostile and jeopardizing the UK's national security. The London government said its new National Security and Investment Act would "protect the UK from harmful investment" and strengthen its ability to investigate and intervene in mergers, acquisitions and other types of transactions.

Defense, energy and transport

Rising Chinese investment is worrying British lawmakers have called on Prime Minister Boris Johnson to take a stronger stance on Beijing. The bill is an update of 20-year-old legislation, which is no longer enough to address modern threats, said the Ministry of Trade, Energy and Industrial Strategy. The new law, which the government will present to parliament, is to force companies to inform the cabinet about mergers and acquisitions in sensitive sectors such as defense, energy and transport. "The United Kingdom remains one of the most attractive investment targets in the world and we want to keep it that way," Business Minister Alok Sharma said in a statement, saying there was no doubt that there would be attempts at hostile takeovers. But Britain wants to "close the back door" to them. "This bill will mean that we can continue to welcome investment in new jobs while excluding those who could jeopardize British security," he added. The draft legislation lists 17 strategic areas, including artificial intelligence, nuclear energy, robotics and the space industry. Similar measures have already been put in place by several London allies, such as Australia, Italy, France and the United States.