UK ‘held to ransom by takeovers’

THE Government should tighten rules on foreign takeovers to avoid the country being ‘held to ransom’, according to an influential business group.

Ministers should look at the hardline approach of Australia on foreign buyouts and control of critical infrastructure by countries such as China according to the EEF, which represents 5,000 UK firms.

The call follows The Mail on Sunday’s revelation last week that Chinese investors had quietly seized control of Global Switch, a London company that stores large amounts of sensitive data.

Citing concerns over security risks, the EEF cautioned that this ‘leaves the UK more open to retaliation or being ‘held to ransom’, especially given the growing geopolitical tension seen over the past few years’.

It added that both Australia and the US ‘have significantly tightened their regimes in light of increased Chinese investment’.