LONDON (UK) – The UK will consider changes to the law to allow monitoring some foreign takeovers to ensure they do not threaten the country’s ability to tackle public health emergencies, the government said on Sunday.
A proposal to amend the Enterprise Act will be put before parliament on Monday to allow the government to intervene if businesses such as vaccine research companies become takeover targets.
“These powers will send an important signal to those seeking to take advantage of those struggling as a result of the pandemic that the UK government is prepared to act where necessary to protect our national security,” Business Secretary Alok Sharma said in a statement.
According to the government, the economic disruption triggered by the pandemic meant that some critical businesses were at increased risk of hostile takeovers or being sold to “malicious parties”.
The amendment allows the government to intervene in three sectors that are central to national security: artificial intelligence, cryptographic authentication technology and advanced materials.
The changes would be in addition to powers introduced two years ago to allow the government to intervene in takeovers of firms manufacturing military products and technologies.
“These measures will strike the right balance between the UK’s national security and resilience while maintaining our world-leading position as an attractive place to invest,” Sharma said.
“The UK is open for investment, but not for exploitation.”
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field