M&A security

Foreign takeovers: Does Britain think Chinese companies threaten its national security?

British companies could receive added protection from foreign takeovers under new government proposals – just months after Theresa May cast doubt on a nuclear-power-station deal with China. The proposals have been presented as being “in the interests of national security.”

May suspended progress on a nuclear-power plant being built in Somerset, in which the Chinese had a central role. China General Nuclear (CGN) agreed to take a 33-percent stake in £18-billion ($23.8-billion) Hinkley Point C project, alongside French firm EDF.

However, progress on the project was paused by May in one of her early acts as Prime Minister in order to allow closer examination of the details.

CGN was “delighted” that Theresa May eventually agreed to the partnership, but the new proposals seem to indicate that something got her spooked.