Johnson ponders introducing a law to prevent foreign takeovers of UK firms
- Business groups have warned that introducing a law to prevent foreign takeovers that threaten national security could have a “chilling” effect on investment in the UK.
- The government is said to be considering new rules that would mean directors could be jailed or companies could be fined hundreds of thousands of pounds for failing to report attempted takeovers by foreign firms that could put national security at risk.
- The proposals come amid growing concerns over China’s influence, and fears that British businesses are becoming more vulnerable to buyouts because of the pandemic and economic downturn.
- However, business groups have warned against using the proposed investment rules as a political tool.
Source: Guardian Business