UK to tighten takeover rules for groups vital to virus response

The UK government will immediately tighten takeover laws to ensure British businesses critical to tackling the coronavirus pandemic are less susceptible to hostile foreign takeovers owing to the economic downturn, Report informs, citing the Financial Times.

Business secretary Alok Sharma will amend legislation to allow the Department for Business, Energy and Industrial Strategy to intervene if companies — such as protective equipment manufacturers and those in the food supply chain — are deemed critical to the UK’s pandemic response but are struggling financially and facing a takeover by foreign powers.

These changes to the UK’s existing takeover legislation come ahead of a new National Security and Investment (NSI) bill — expected later this summer — that will give the government further and more comprehensive powers to intervene in takeovers, with a particular focus on China.