My Lords, I thank the Minister for his introduction of the order, which I support. I note that section 2 of the Explanatory Memorandum confirms that Section 58 is amended to specify an ability
“to combat, and to mitigate the effects of, public health emergencies as a public interest consideration … in mergers and acquisitions”.
The Government already have the power to investigate mergers and takeovers for reasons of, inter alia, national security, market dominance, protecting supply chains and UK financial security.
As the noble Lord, Lord Liddle, mentioned, France, Germany, Italy and Spain all have in place controls such as this. The EU is worried that foreign investors may try to acquire European companies in order to take control of key technologies, infrastructure and expertise. A focus of the EU regulator is to counter unfair competition from state-owned firms, which are the backbone of economies such as China. European companies have long been in the sights of Chinese rivals, including major state-owned enterprises. In the current public health crisis and economic downturn, they are more than ever vulnerable to hostile bids from overseas. In his response, will the Minister say what steps the Government are taking to liaise with our European neighbours to benefit from collective conformity?
The priority of any Government is the safeguarding and security of the people. Managing the Covid-19 pandemic is a case in point. Enabling vaccine research and protecting the ownership of PPE manufacturers and similar supply chain organisations are vital. Hostile takeovers instigated not by genuine business progress and development but an intent to damage or otherwise UK interests must be prevented.
The UK has been threatened with retaliation and retribution for the banning of Huawei technology on security grounds. Will the Minister confirm that these extra measures are essential to ward off the threat of asymmetric attacks and cyberattacks which may diminish our Covid-19 response?
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