International Investment

Vince Cable Excerpts

Tuesday 17th October 2017 Commons Chamber

[Greg Clark]

That is the essence of the proposals, and it is necessary to update them from time to time in line with the recommendations that arose from the national security risk assessment. It is very important—it is the first duty of Government—to make sure that we are protected from hostile threats.

[Sir Vince Cable (Twickenham) (LD)]

I welcome the Secretary of State’s recognition of the need to widen the public interest test, but express some disappointment that his definition of it does not appear to include cases where British companies that are fundamental to the science base would be at risk of acquisition, as in the abortive Pfizer AstraZeneca bid, and more recently in the successful bid for ARM, Aveco and the many smaller companies now being acquired on the back of a cheap pound.

[Greg Clark]

I am grateful to the right hon. Gentleman for his comments. He will be aware that under European law we are limited in the public interest test to questions of national security, financial stability and media plurality. That is the situation that exists, hence the proposals that we have are around strengthening national security. I ask the right hon. Gentleman to study the Takeover Panel proposals to give a longer period for the scrutiny of any bids in the public domain, allowing the target company to respond, because from what I have seen so far, that has received a very positive response in corporate Britain, and when that consultation concludes I very much hope it will be enacted.