UK must protect firms against foreign takeovers - Conservative MP

Saturday, 23. May 2020 23:27

Chairman of the House of Commons Foreign Affairs Committee, Tom Tugendhat, insisted on Saturday the United Kingdom has to protect domestic companies from being taken over by foreign investors, as due to the coronavirus pandemic "much of the intellectual property the UK needs for long-term innovation and prosperity could disappear to Shanghai or Shenzhen."

"The UK's approach must go beyond the areas of national security such as military, dual-use, computing hardware and quantum technology sectors already covered by a change in the law two years ago," the Conservative Party MP wrote in the Financial Times, reminding the European Union has also recommended its member states to buy stakes in vulnerable domestic companies.

Meanwhile, the island country has extended the job retention scheme until October. Still, Chancellor of the Exchequer Rishi Sunak warns the UK's economy faces a "severe impact" from the crisis.

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