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London Tightens Rules On Foreign Acquisitions Of British Companies

London Tightens Rules On Foreign Acquisitions Of British Companies

According to the publication, parliamentarians from the ruling Conservative party Express particular concern about China.

The British government has prepared amendments to legislation that tighten the rules for foreign acquisitions of British companies that play a key role in the fight against coronavirus. This news was reported on Monday by the Financial Times newspaper with reference to the Head of the Ministry For Business, Energy, and Industrial Strategy of the UK, Alok Sharma.

It is expected that this Agency will expand its powers and will be able to intervene in the process of foreign takeover of those companies in the United Kingdom that produce, in particular, protective equipment and food, and were at risk of being taken over by foreign entrepreneurs due to financial difficulties.

This is about stopping attempts to acquire companies that are crucial to the strategic interests of the UK, from entrepreneurs from countries that are "considered unfriendly to national interests," the publication notes.

Parliamentarians from the ruling Conservative party Express particular concern about "the role of China, which is aggressively seeking [the acquisition] of enterprises whose activities are considered vital to the strategic interests" of the country, the newspaper points out.

The amendments to the business Act of 2002, Sharma explained, would "strike a balance" between protecting national security and keeping the UK "attractive to investors." The new legislative measures cannot, in his words, be called "anti-investment, in this case, it is rather a reasonable and proportionate response to the increased risks associated with the pandemic."

According to the latest report of the Ministry of Health of the UK, the number of cases of coronavirus infection in the country has exceeded 304 thousand, and the number of deaths is approaching 43 thousand.

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