Скачать или смотреть U K Government Talks Tough With New Foreign Ownership Rules But They’ve

Is the U. K. government’s clampdown on foreign investors buying up strategic assets a legitimate response to concerns about increasing Chinese influence or just empty rhetoric when that horse has long since bolted? The introduction of rigorous checks is designed to prevent overseas buyers snapping up key domestic infrastructure and companies operating in sensitive industries “through the back door”. The new laws, announced in yesterday’s national security and investment bill, also come after the coronavirus pandemic exposed the country’s overreliance on international suppliers of crucial healthcare products. Overseas businesses will face stringent requirements to inform a government unit of their plans to acquire stakes in U. K companies operating in 17 strategic sectors, including energy, defence and technology. Failure to do so could see directors jailed for up to five years and companies fined 5% of their global turnover. The government will also have the power to review deals retroactively. The proposals, expected to come into law later this year, are the biggest overhaul of takeover rules in 20 years. The government argues they are bringing outdated U. K. foreign investment legislation in line other major economies and reflect the evolving threats countries face. But the rules will introduce uncertainty and further layers of complexity to deals in the U. K. at a time when Britain is trying to market itself as open to business globally, especially with Brexit imminent. Nicole Kar, head of U. K. competition at lawyers Linklaters, said the measures are consistent with a wider global trend of toughening up foreign investment laws. But he said the proposals are “more far-reaching” than expected and mark a “step-change in enforcement powers”. The worry is they prove too onerous. The government’s own analysis found the new regime would result in 1,000-1,830 transactions a year needing checking. Kar described this as “an eye-catching number given that only 12 transactions have been reviewed on national security grounds since the current regime was introduced in 2003”.“This bill gives the government the power to scrutinise broad swathes of M&A activity with any UK nexus. We therefore anticipate that foreign investment rules, both in the UK and internationally, will be an increasingly onerous consideration for overseas investors planning international transactions.”Business secretary Ashok Shah attempted to play down these fears, insisting the new measures will not scare off overseas money. He argued the country “remains one of the most attractive investment destinations in the world” but added “hostile actors should be in no doubt – there is no back door into the U. K”. Cynics will argue that potential suitors have seldom needed to use the back door when courting domestic assets. The U. K. has already allowed many key assets, from nuclear power stations to the largest airport and parts of its telecoms network, to be sold off to foreign buyers.


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