Latest news with #NationalSecurityandInvestmentAct
Yahoo
28-05-2025
- Business
- Yahoo
Labour plan to let foreign states team up to own newspapers sparks alarm
Labour's plan to let foreign powers own shares in newspapers has sparked alarm that they could team up to gain sway over Britain's free press. Lisa Nandy, the Culture Secretary, has proposed laws to allow states to hold passive stakes of up to 15pc in newspapers and news websites. There is no planned rule on what portion a group of foreign states could own, however, raising concerns in the House of Lords over 'where will it end?' The legislation is partly intended to dispel the uncertainty faced by The Telegraph since a takeover bid led by the United Arab Emirates was blocked by the Conservatives over a year ago. By easing an existing outright ban on foreign state ownership, Ms Nandy's plan is also meant to help improve British relations with the wealthy Gulf state, which were damaged by the saga. The UAE is now expected to become a silent minority shareholder in a consortium led by RedBird Capital Partners, the US private equity firm which was previously the junior partner in its bid. The Conservative Party leadership has said it will support a limit of 15pc. However, after analysing the proposed statutory instrument, the Tory peer Baroness Stowell, a pivotal figure in the rebellion that derailed the UAE bid, has written to Ms Nandy to demand changes. Baroness Stowell, who has said she will not oppose single passive stakes of up to 15pc, told The Telegraph: 'Without a cumulative limit on foreign state shareholdings you have to ask where will it end? 'You could have countries teaming up to seek influence. I don't understand why this hasn't been addressed in the proposed legislation. It may be that there are other ways the Government believes it can address this risk. If so, let's hear it and debate it.' Ministers have other powers to block foreign investments, such as those they believe are a potential threat to British security, under the National Security and Investment Act. Lord Fox, the Liberal Democrats' culture spokesman in the Lords, backed Baroness Stowell's demand for a rethink and said there were 'glaring loopholes … ready to be taken advantage of by foreign states'. He added: 'It's wrong that this Government has no qualms with multiple states owning unlimited aggregate stakes in British papers. The independence of UK media must not be made subject to foreign sway. 'We are pressing peers from right across the House to stand with us, block this legislation and defend press freedom.' The Liberal Democrats have tabled a rare 'fatal motion' in the Lords to obstruct Ms Nandy's legislation. They argue that it would effectively overturn the ban on foreign state ownership approved by Parliament last year. Some Conservative peers, led by Lord Forsyth, are expected to back the bid to block the legislation. He has said the idea that a stake of 15pc could be entirely passive was 'utterly naive'. The Conservatives originally proposed a limit of just 5pc to allow sovereign wealth funds to make small passive investments in newspapers, such as via share index trackers. Ms Nandy opted to increase the limit three-fold after lobbying on behalf of Rupert Murdoch and Lord Rothermere, the owner of The Daily Mail. She agreed with them that a 5pc limit would cut news publishers off from a potentially vital source of international capital at a turbulent time as the decline of print accelerates. It is not clear whether any foreign state has already made an equity or debt investment in a UK news publisher. The Independent news website, controlled by Lord Lebedev, sold a 30pc stake to a Saudi investor in 2017. A subsequent Ofcom investigation explored potential links between the investor and the Saudi state but did not draw conclusions. The Independent subsequently formed an editorial and commercial partnership with a Saudi state media company. Under Ms Nandy's proposals, she will have a duty to trigger regulatory investigations when there are concerns of foreign state influence. Baroness Stowell said there was a need to ensure MPs and peers had a bigger role, with a guarantee that questions about press freedom would be heard in the chamber. Questions she attempted to ask about the fate of The Telegraph were rejected by parliamentary officials in consultation with the Government on three occasions. Baroness Stowell said: 'My concern is that Parliament has all the tools it needs to protect freedom of the press. This is especially important given the proposals from the Government create an ongoing duty to monitor and investigate issues with foreign state investors. 'When it comes to press freedom it is critical that Parliament can ask any questions it sees fit.' The Department for Culture, Media and Sport was asked for comment. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Chinese takeover of UK smoke alarm maker triggers national security alert
National security restrictions have been placed on a tiny British manufacturer of smoke alarms after it was taken over by a state-owned Chinese company. Pat McFadden, minister for the Cabinet Office, issued a notice banning Kent-based FireBlitz Extinguisher from selling its own internet-connected devices and from sharing data with 'certain entities'. The order was imposed through the National Security and Investment Act after the company was acquired by Canadian-based Maple Armor, which is in turn part of Beijing-headquartered fire alarm company Jade Bird. Jade Bird's largest shareholder is Peking University, which like other Chinese academic institutions has close links with the country's communist government. Weimin Cai, who is Jade Bird's chairman and founded the business in 2001, has also been listed as a director of FireBlitz since April 2024, according to Companies House. No explicit reason was given for the UK Government's restrictions on FireBlitz. However, under the 2021 act, ministers have wide-ranging powers to intervene in takeovers that are seen to pose potential risks to national security. The Cabinet Office said Mr McFadden had deemed the restrictions 'necessary and proportionate' following 'a detailed national security assessment'. A spokesman said: 'The National Security and Investment Act enables the government to continue championing open investment while protecting national security. 'As you would expect, we cannot comment further given the quasi-judicial nature of the Government's investment screening powers.' Such orders are usually issued to tackle either imminent security risks or perceived risks that might arise in future. There is no suggestion of wrongdoing by FireBlitz, Maple Armor or Jade Bird. FireBlitz's products are used by a string of fire and rescue services across the country, as well as other public bodies. It secured a joint contract worth up to £40m in 2015 to supply smoke alarms and hard-wired alarms to YPO, a major supplier to the public sector, as well as another joint contract worth up to £30m in 2021 to supply smoke alarms to all of the country's fire services. The Government's order restricts what kinds of devices the company can sell in future and how it uses data. It bans FireBlitz from developing, manufacturing or marketing its own 'internet of things' devices – products that can connect to the internet and wirelessly transmit information to each other – or sell them in partnership with companies based in countries 'outside of a pre-approved list'. The company was also banned from sharing data it collects from any internet-connected devices with any other entities. One cyber security expert said that digitally-enabled fire alarms could theoretically pose a risk as they could be remotely accessed and used for snooping or to gain access secure buildings. Ken Munro, founder of Pen Test Partners, said such alarms are typically connected to 'smart' door systems and automatically disengage the locks when a fire is detected in a building, so that people can escape safely. He said: 'So if you want to break in somewhere, you just trigger the alarm remotely, and it unlocks all the doors.' Internet connected smoke alarms also amounted to 'a sensor in every room', he added. 'Who's to say what's inside that smoke sensor? It's going to be networked, so it's going to be somewhere on the core network. It's going to have an interface, so could easily end up being a backdoor, particularly if it's cloud connected. 'So therefore, you've got a fire alarm that's probably connected to a cloud [computing server]. And that cloud's probably in China somewhere, if it's Chinese.' China has previously been accused by Ken McCallum, the head of MI5, of espionage on an 'epic scale' and MPs have called for the country to be designated as a threat to Britain. There is no suggestion that Jade Bird or FireBlitz is engaged in espionage. FireBlitz was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Sky News
07-02-2025
- Business
- Sky News
Cobham break-up nears end with Ultra warfare simulation arm sale
The private equity backer of one of Britain's oldest industrial manufacturing groups is in talks to sell an advanced defence technology business that will bring its parent's dismantling close to completion. Sky News has learnt that Advent International, the buyout firm which bought Cobham for £4bn in 2020 and then swooped on London-listed Ultra Electronics in a £2.6bn deal the following year, is in detailed negotiations to offload Ultra Electronic Warfare Simulation Technology (EWST). The division provides "training and performance validation capabilities" to its customers, and - according to the company - "specialises in market-leading, multi-spectral threat and countermeasure simulators that are designed to strengthen naval, air force, army and the defence industry's electronic warfare testing, evaluation and training". One bidder who explored a bid at an earlier stage of the sale process said on Friday that the EWST business was unlikely to command a significant price. A change of control may nevertheless require approval under the government's National Security and Investment Act, given the nature of the division's operations. The EWST division is part of Ultra Intelligence & Communications, which is itself a subsidiary of the broader group. Alvarez & Marsal, the professional services firm, has been drafted in to manage the auction, the source added. Advent has overseen a wholesale break-up of the enlarged Cobham group - a controversial process which drew opposition from members of the company's founding family as well as politicians and commentators. Among the assets already sold was Paris-based Cobham Aerospace Communications to the French group Thales, which fetched £850m in 2023.
Yahoo
31-01-2025
- Business
- Yahoo
UK's Smiths Group break-up plan faces security concerns amid tight regulation
By Aby Jose Koilparambil (Reuters) - UK's Smiths Group will have to navigate national security concerns to secure a sale of its screening and detection business to a foreign buyer, but the engineering group believes the disposal is feasible, its CEO told analysts. Since the UK's National Security and Investment Act took effect in 2022, scrutiny of deals has intensified, with transactions involving Chinese or Russian-linked firms facing hurdles. The FTSE 100 company said earlier it would separate Smiths Detection, known for its baggage-screening kit in airports and explosive detectors, through a demerger or sale after the disposal of the interconnect business. "These businesses provide critical products... There will be national security and control issues we must address, and we have accounted for them in our plans," CEO Roland Carter told analysts on Friday. The Smiths Interconnect business supplies defence and satellite communications antenna systems and multi-function radio frequency systems, among other products. A buyer will likely have to be a defence or government contracting firm with existing relationships in order to get through regulatory approvals, said Andrew Marsh, fund manager at Artemis Investment Management, a top-five shareholder in Smiths Group. Marsh also said the government has to be "less restrictive" on such matters. Major UK interventions include blocking Beijing Infinite Vision Technology from acquiring University of Manchester intellectual property and ordering Chinese-owned Nexperia to sell 86% of microchip plant Newport Wafer Fab. Other cases involved Hong Kong's Super Orange HK's failed takeover of Pulsic, and Russian-backed LetterOne's forced sale of broadband provider Upp. Last year, Abu Dhabi's International Media Investments abandoned its bid for The Telegraph and The Spectator after new laws barred foreign state ownership of UK newspapers. The Labour government is pushing regulators to ease burdens on businesses and has ousted the country's competition watchdog chairman for not aligning with its economic acceleration strategy. Sign in to access your portfolio
Reuters
31-01-2025
- Business
- Reuters
UK's Smiths Group break-up plan faces security concerns amid tight regulation
Jan 31 (Reuters) - UK's Smiths Group (SMIN.L), opens new tab will have to navigate national security concerns to secure a sale of its screening and detection business to a foreign buyer, but the engineering group believes the disposal is feasible, its CEO told analysts. Since the UK's National Security and Investment Act took effect in 2022, scrutiny of deals has intensified, with transactions involving Chinese or Russian-linked firms facing hurdles. Advertisement · Scroll to continue The FTSE 100 (.FTSE), opens new tab company said earlier it would separate Smiths Detection, known for its baggage-screening kit in airports and explosive detectors, through a demerger or sale after the disposal of the interconnect business. "These businesses provide critical products... There will be national security and control issues we must address, and we have accounted for them in our plans," CEO Roland Carter told analysts on Friday. The Smiths Interconnect business supplies defence and satellite communications antenna systems and multi-function radio frequency systems, among other products. A buyer will likely have to be a defence or government contracting firm with existing relationships in order to get through regulatory approvals, said Andrew Marsh, fund manager at Artemis Investment Management, a top-five shareholder in Smiths Group. Marsh also said the government has to be "less restrictive" on such matters. Major UK interventions include blocking Beijing Infinite Vision Technology from acquiring University of Manchester intellectual property and ordering Chinese-owned Nexperia to sell 86% of microchip plant Newport Wafer Fab. Other cases involved Hong Kong's Super Orange HK's failed takeover, opens new tab of Pulsic, and Russian-backed LetterOne's forced sale of broadband provider Upp. Last year, Abu Dhabi's International Media Investments abandoned its bid for The Telegraph and The Spectator after new laws barred foreign state ownership of UK newspapers. The Labour government is pushing regulators to ease burdens on businesses and has ousted the country's competition watchdog chairman for not aligning with its economic acceleration strategy.
