Day Britain fought back against the takeover predators

Ministers to block sale of vital UK firms Targets will have HQ and jobs protected And foreign bids will face tough scrutiny

TOUGH rules are being drawn up that could finally stem the tide of foreign predators taking control of British companies, nuclear plants and tech pioneers.

City regulators yesterday outlined a series of changes to takeover rules to force bidders for British firms to come clean over their intentions – including any plans to move the company’s headquarters or shut down research labs.

And Business Secretary Greg Clark last night pledged to publish plans this autumn to ensure investment from overseas did not pose a threat to national security.

It followed Theresa May’s pledge in the Queen’s Speech to ‘bring forward proposals to ensure that critical infrastructure is protected to safeguard national security’.

And Britain’s bid to beef up its defences looks set for an instant test after Beijingcontrolled China General Nuclear confirmed it was looking to buy into a proposed £15bn nuclear power station at Moorside in Cumbria.

A string of foreign predators have sought to take control of British firms in recent years – raising fears over the future of jobs, expertise and intellectual property as well as national security.

One of the most controversial deals was the £11.9bn hostile takeover of Cadbury in 2010 by US food group Kraft, which then closed factories, laid off staff and shifted the chocolate maker’s headquarters out of Britain. More recently Japanese giant Softbank bought ARM – the UK’s largest technology firm – for £24bn and quickly sold a 25pc stake to investors from Saudi Arabia.

Kraft’s attempt to buy Unilever this year and Pfizer’s audacious bid for Astrazeneca last year also caused alarm, as did the proposed takeover of the London Stock Exchange by German rival Deutsche Boerse.

Although the deals collapsed, they raised fears that even Britain’s biggest companies are vulnerable to foreign predators.

The Takeover Panel now wants to introduce a series of changes to its rules to help protect British businesses from predators. Under the proposals, bidders will be forced to come clean over their ultimate plans for the combined group much earlier, spelling out what will happen to the target company’s HQ and research and development operations. They will also have to reveal the impact on the entire workforce, including potential changes to the mix of skilled and unskilled workers and full time versus part time staff.

Welcoming the proposals, Clark said: ‘One of Britain’s biggest assets in competing in the global economy is our deserved reputation for being a dependable and confident place in which to do business.’

Setting the scene for a fresh clampdown in the coming weeks, a business department spokesman added the proposals ‘will set out further measures to safeguard national security, while ensuring the UK remains a global champion of free trade and investment’.