UK to announce laws to prevent foreign takeovers posing national security risk: Times


(Reuters) – British Prime Minister Boris Johnson is preparing to announce tough laws to prevent foreign takeovers that pose risks to national security amid growing concern about the influence of China, The Times newspaper reported.

The prime minister is said to be pressing for legislation to make it mandatory for companies to report attempted takeovers which could give rise to security risks, backed by the threat of criminal sanctions, according to the newspaper.

Companies that fail to report takeovers or ignore conditions imposed by the UK government after takeovers could see their directors jailed, disqualified or fined, the newspaper said.

The approach, which is being pushed by the prime minister’s adviser Dominic Cummings, is said to have the support of finance minister Rishi Sunak and will require businesses to declare when a foreign company tries to buy more than 25% of shares, purchase assets or intellectual property, the Times said.

The prime minister also wants academic partnerships and research projects to be included under the rules, the newspaper added.

The legislation, which The Times said could be tabled within weeks, comes at a time of increased tension between Britain and China, after the country designated Huawei a “high-risk vendor” in January and expressed concern over Beijing’s handling of the situation in Hong Kong.

Johnson has also come under pressure from the United States and lawmakers from his own party, who have argued that Huawei’s equipment could be used by Beijing for spying, which the Chinese telecom giant has repeatedly denied.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Economy News

Leave a Reply

Your email address will not be published. Required fields are marked *