At present, the Bill includes intragroup reorganisations in the mandatory notification regime if the entity being transferred within a corporate group carries on activities in one of the 17 specified sectors. We could not believe this at first (how could an internal restructuring within a single group of companies which, by definition, does not involve any change of control of that group of companies, possibly be a national security risk?). So we wrote to BEIS…
Last week on 24 February, Baker McKenzie was delighted to sponsor the annual M&A Practitioners’ Summit, hosted by City & Financial Global. Featuring a wide range of speakers from regulators, public bodies, industry and private practice, the virtual summit addressed recent key regulatory, legal and market developments impacting transactional practice. Inevitably, the National Security and Investment Bill (“Bill”) featured highly on the topics of discussion. As covered in previous blog posts (here), the Bill will…
In a Report on Foreign Involvement in the Defence Supply Chain published on 14 February 2021, the UK Defence Committee has made a number of points and recommendations regarding the perceived vulnerability of the UK’s defence supply chain. While recognising that the UK’s broad range of domestic and international suppliers has brought benefits to its defence industry and wider economy, the Report considers that stronger safeguards around foreign investment are required. It criticises the Ministry…
On 1 February, one year after leaving the EU, the UK submitted a formal request to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The original Trans-Pacific Partnership (TPP) was agreed in principle in October 2015, attracting significant attention as a model for future Free Trade Agreements (FTAs). In January 2017 the newly elected Trump administration announced its withdrawal from the TPP, leaving the remaining 11 countries to agree the revised CPTPP in October 2018,…
On 20 January 2021 the UK Secretary of State for International Trade, Liz Truss, announced that the UK intended to formally submit its application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”). The CPTPP is a multilateral free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Discussions have been ongoing between the CPTPP members and the UK on the UK’s potential accession since 17…
The UK Government launched a Consultation on its new UK National Security and Investment Bill, and specifically the definition of the sectors where investments would trigger a mandatory notification. This Consultation closed on 6 January. Baker McKenzie welcomes the opportunity and responded to the Consultation. We have identified a number of key issues that merit consideration: A legal definition of “national security” to help businesses to understand whether a transaction raises genuine concerns.Significant tightening and…
In brief Trade between Vietnam and the United Kingdom (U.K.) will continue to be able to enjoy preferential treatment post-Brexit via the U.K.-Vietnam Free Trade Agreement (UKVFTA), which is intended to replicate the benefits of the European Union Vietnam Free Trade Agreement (EVFTA). In more detail Vietnam and the U.K. signed the UKVFTA on 29 December 2020, effectively preserving the U.K. – Vietnam preferential trading terms available under the EVFTA, which entered into force 1…
Last week the UK Government introduced the Telecommunications (Security) Bill to Parliament, which would give the Government new powers to control telecommunications providers thought to present a security risk, and to implement the UK ban announced earlier this year on the installation of equipment from Huawei and high risk vendors in 5G networks from the end of September 2021. These new rules will directly impact public telecoms providers (public electronic communications networks and services -…
On 6 November 2020, the UK Government launched a website (see here) designed as a guide for digital and tech firms doing business in China. The guidance explains that the UK and China can develop new technology to tackle climate change for example, create new jobs and rebalance the British economy and includes case studies showing the scale of opportunities linked to China’s growing economy. However, it also seeks to raise awareness of what the…
Following on from our previous post on 22nd October 2020 (please see here), the UK Government have confirmed that a full consultation will be launched in early 2021 on potential precautionary powers to block company listings on UK stock exchanges on national security grounds in certain scenarios. The announcement has coincided with the recent introduction of the National Security and Investment (“NS&I”) Bill which significantly expands the UK Government’s powers to review the national security…