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You can find the current article at its original source at https://www.theguardian.com/business/2017/feb/22/uk-to-draw-up-response-to-foreign-takeovers-of-firms-business-secretary-bid-unilever-jobs-carmaker-vauxhall
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| UK plans draft response to foreign takeovers after failed Unilever bid | |
| (about 20 hours later) | |
| The business secretary, Greg Clark, has pledged to outline how the government should respond to foreign takeovers of crucial UK firms in the wake of Kraft Heinz’s failed £115bn bid for Unilever. | The business secretary, Greg Clark, has pledged to outline how the government should respond to foreign takeovers of crucial UK firms in the wake of Kraft Heinz’s failed £115bn bid for Unilever. |
| Speaking at a conference in London, Clark said he would draft proposals in the coming weeks to show how ministers should handle controversial takeover bids, including bids for infrastructure projects by foreign corporations. | Speaking at a conference in London, Clark said he would draft proposals in the coming weeks to show how ministers should handle controversial takeover bids, including bids for infrastructure projects by foreign corporations. |
| The move comes amid growing concerns that the Brexit vote and steep fall in the value of the pound could trigger a wave of predatory takeovers of big British firms. | The move comes amid growing concerns that the Brexit vote and steep fall in the value of the pound could trigger a wave of predatory takeovers of big British firms. |
| Clark said: “We have taken the opportunity to look at our arrangements to make sure they are kept up to date. We have said we would do that in the context of mergers, particularly if it relates to critical infrastructure, as outlined by the Hinkley Point C decision. So we will be setting out some proposals in the weeks ahead.” | Clark said: “We have taken the opportunity to look at our arrangements to make sure they are kept up to date. We have said we would do that in the context of mergers, particularly if it relates to critical infrastructure, as outlined by the Hinkley Point C decision. So we will be setting out some proposals in the weeks ahead.” |
| Theresa May finally gave the go-ahead for the new power plant in Somerset in September, after alarming the French and Chinese partnership that will deliver the project by putting the whole scheme under review. | Theresa May finally gave the go-ahead for the new power plant in Somerset in September, after alarming the French and Chinese partnership that will deliver the project by putting the whole scheme under review. |
| At the same time as giving the green light to Hinkley, the government announced a review of its approach to the ownership and control of “critical infrastructure”. | At the same time as giving the green light to Hinkley, the government announced a review of its approach to the ownership and control of “critical infrastructure”. |
| “This will allow the UK government to introduce a consistent approach to considering the national security implications of all significant investments in critical infrastructure, including nuclear energy, in the future,” it said at the time. | “This will allow the UK government to introduce a consistent approach to considering the national security implications of all significant investments in critical infrastructure, including nuclear energy, in the future,” it said at the time. |
| “The changes mean that, while the UK will remain one of the most open economies in the world, the public can be confident that foreign direct investment works in the country’s best interests.” | “The changes mean that, while the UK will remain one of the most open economies in the world, the public can be confident that foreign direct investment works in the country’s best interests.” |
| Clark’s remarks on Wednesday followed his pledge about the government’s “unbounded commitment” to protecting jobs at the carmaker Vauxhall. | Clark’s remarks on Wednesday followed his pledge about the government’s “unbounded commitment” to protecting jobs at the carmaker Vauxhall. |
| Fears are growing about plants in Ellesmere Port and Luton as the French owner of Peugeot and Citroën, PSA Group, presses ahead with talks to buy General Motors’ European business, which includes Opel in Germany and Vauxhall in the UK. | Fears are growing about plants in Ellesmere Port and Luton as the French owner of Peugeot and Citroën, PSA Group, presses ahead with talks to buy General Motors’ European business, which includes Opel in Germany and Vauxhall in the UK. |
| Clark said on Wednesday that Peugeot recognised the contribution of the two UK plants. | Clark said on Wednesday that Peugeot recognised the contribution of the two UK plants. |
| “There was a recognition, which I emphasised, of the contribution to the performance of Vauxhall of the two plants and indeed the other operations that they have in this country,” he said. “They are efficient, they are successful and there was a clear recognition of that by PSA.” | “There was a recognition, which I emphasised, of the contribution to the performance of Vauxhall of the two plants and indeed the other operations that they have in this country,” he said. “They are efficient, they are successful and there was a clear recognition of that by PSA.” |
| His comments also follow last week’s £115bn takeover bid for Unilever by Kraft Heinz. The US company walked away after the Anglo-Dutch maker of brands such as Persil, Marmite and PG Tips said the offer had “no merit, strategic or financial”. | His comments also follow last week’s £115bn takeover bid for Unilever by Kraft Heinz. The US company walked away after the Anglo-Dutch maker of brands such as Persil, Marmite and PG Tips said the offer had “no merit, strategic or financial”. |
| Last year the Japanese investment corporation Softbank bought one of the UK’s most prestigious technology companies, ARM Holdings, for £24bn, sparking fears that the fall in the currency made UK firms more vulnerable. | Last year the Japanese investment corporation Softbank bought one of the UK’s most prestigious technology companies, ARM Holdings, for £24bn, sparking fears that the fall in the currency made UK firms more vulnerable. |
| May’s government welcomed the ARM deal. However, a week earlier in her campaign speech shortly before she became prime minister, May signalled a willingness to take a more interventionist role in foreign takeovers. | May’s government welcomed the ARM deal. However, a week earlier in her campaign speech shortly before she became prime minister, May signalled a willingness to take a more interventionist role in foreign takeovers. |
| She highlighted Kraft’s takeover of Cadbury’s, and Pfizer’s failed bid for AstraZeneca, as examples of deals that could have benefited from closer government scrutiny. “A proper industrial strategy wouldn’t automatically stop the sale of British firms to foreign ones, but it should be capable of stepping in to defend a sector that is as important as pharmaceuticals is to Britain,” May said. | She highlighted Kraft’s takeover of Cadbury’s, and Pfizer’s failed bid for AstraZeneca, as examples of deals that could have benefited from closer government scrutiny. “A proper industrial strategy wouldn’t automatically stop the sale of British firms to foreign ones, but it should be capable of stepping in to defend a sector that is as important as pharmaceuticals is to Britain,” May said. |
| Stephen Martin, director general at the Institute of Directors, said the government was right to make sure there were checks and balances on foreign direct investment and takeovers. | Stephen Martin, director general at the Institute of Directors, said the government was right to make sure there were checks and balances on foreign direct investment and takeovers. |
| “However, the combination of shareholders, the Takeover Panel and the Competition and Markets Authority seems to us a good framework and government must be clear what the goal of any additional powers should be. | “However, the combination of shareholders, the Takeover Panel and the Competition and Markets Authority seems to us a good framework and government must be clear what the goal of any additional powers should be. |
| “In a world increasingly enticed by isolationism, Britain has to do more to demonstrate that it is keen to play a part on the global stage. During the referendum campaign, we were promised that Britain will be the loudest voice for free trade and free markets on the global stage; let’s ensure that voice remains strong.” | “In a world increasingly enticed by isolationism, Britain has to do more to demonstrate that it is keen to play a part on the global stage. During the referendum campaign, we were promised that Britain will be the loudest voice for free trade and free markets on the global stage; let’s ensure that voice remains strong.” |