Sovereign Defence Capability: Meggitt Takeover
Debate between Lord Callanan and Baroness Smith of Newnham(3 years, 2 months ago)
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Lord Callanan (Con)
The current takeover is not by an equity fund but a defence contractor. As I said, we welcome investment into the UK but will not hesitate to take action if it threatens or compromises our national security.
Baroness Smith of Newnham (LD)
My Lords, Tom Williams of Parker told the Financial Times that he was open to talking to Ministers and, in particular, said:
“We recognise the importance that everybody has around national security and defence capabilities. We want to reassure people that we have no intention of impacting that.”
That is fine in this case, perhaps, but what assessment have the Government made of bids where those wishing to take over sovereign defence capabilities do not have such apparently benign aims?
Lord Callanan (Con)
As I said, we have not taken any decision on the current takeover yet, but the UK will always enthusiastically champion free trade, recognising that the vast majority of inward investment into this country is highly beneficial and creates jobs and prosperity for the country. An open approach to international investment, as many other countries have, has to include the appropriate safeguards. We have powers under the Enterprise Act 2002 to intervene in mergers or takeovers that raise particular public interest concerns. As I have intimated in other answers, we have recently strengthened our powers through the National Security and Investment Act, which will commence on 4 January.