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Committees hold joint session on changes to takeover rules

25 October 2018

The Business, Energy and Industrial Strategy Committee and the Defence Committee holds a joint session with Ministers on the Government’s proposals for new powers to block foreign takeovers.

Stuart Andrew MP, Parliamentary Under Secretary of State, Minister for Defence Procurement, and Richard Harrington MP, Parliamentary Under Secretary of State, Minister for Business and Industry, will face questions on the proposals to increase Government scrutiny of foreign takeovers, as outlined in July’s White Paper ‘National Security and Investment’.

Chair's comments

Commenting ahead of the session, Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy Committee said:

"This is a valuable opportunity to question Ministers on the expansion to the powers which Government has to block foreign takeovers. It’s vital that the UK remains an attractive destination for foreign investment while ensuring the right safeguards are in place to protect important UK assets, technology and intellectual property. The Business Committee will be keen to examine the burden these proposals will place on business and, given the expected increase in Government intervention, what clarity the Government is providing to businesses on how the regime will work in practice".

Chair of the Defence Committee, Dr Julian Lewis, says,

"Our worry is that if the intellectual property for a military project resides in a particular company, and if that company is broken up and sold off, we could end up with potentially hostile countries owning the intellectual property rights to our defence products. We need to know that, according to the Enterprise Act 2002, a Secretary of State would intervene in mergers where they give rise to a certain specified national security concern".

Witnesses

Tuesday 30 October 2018, The Boothroyd Room, Portcullis House

At 10.45am

  • Stuart Andrew MP, Parliamentary Under Secretary of State, Minister for Defence Procurement
  • Richard Harrington MP, Parliamentary Under Secretary of State, Minister for Business and Industry
  • Alex Chisholm, Permanent Secretary for BEIS
  • Huw Walters, Director, Prosperity and International Business, Ministry of Defence

Further information

Image: Parliamentary Copyright

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