Foreign investment has been ripe for legislative change in the
United Kingdom. We have previously discussed this in
our
Clients and Friends Memo of 28 July 2020 and our podcast. The latest development came on
11 November 2020, as Prime Minister Boris Johnson announced
the National Security and Investment Bill 2020 (the Bill), which
overhauls the current merger and acquisition rules in relation to
foreign investment.
The Bill is aimed at broadening the scope of transactions that
the Government may review for national security reasons, that are
divorced from competition, media plurality or financial stability
grounds. In June 2020, the Government legislated for a short
term change through the Enterprise Act 2002, which included
lowering the threshold for intervention in three specific sectors:
artificial intelligence, cryptographic authentication technology
and computing hardware. Even with these lower thresholds only
a handful of transactions would be considered