New fascist laws in the United Kingdom give the British government power to block takeovers in 17 areas of the economy, as it enforces the biggest national security shake-up in years.
The UK government’s National Security and Investment (NSI) Act has come into force, giving the state new powers to intervene in business and investor takeovers across critical areas of the economy.
The law gives ministers the ability to scrutinize and intervene in acquisitions made by anyone, including businesses and investors, where there is potential harm to the UK’s national security.
It identifies 17 sectors of the economy where it is necessary to give ministers greater powers to oversee acquisitions.
They will now be able to interfere investor deals in a wide range of areas, including advanced robotics, artificial intelligence, the civil nuclear sector, transport, quantum technology, and the defense space.
The government on Downing Street already had some powers to block deals where a foreign-led takeover could affect things like economic stability, media plurality, and the pandemic response.
The move comes amid a great deal of controversy surrounding the $40 billion ($54 billion) takeover of British chip-maker ARM by American multinational Nvidia. Other industries, notably pharmaceuticals, have also been a target for US-led takeovers.
UK firms have often been easy pickings for US multinationals and private equity. The recent takeovers of defense suppliers Ultra Electronics and Meggitt also attracted government scrutiny.
RT. com / ABC Flash Point News 2022.