FOREIGN COMPANIES: REGULATION
Sir Nicholas Soames: To ask the Secretary of State for Business, Innovation and Skills, what assumptions his Department has made about the powers at its disposal to regulate investments by overseas (a) state-owned enterprises and (b) sovereign wealth funds; and if he will make a statement.
Nick Boles, Minister of State for Skills: The UK’s traditional openness to trade and investment has served us well. This is increasingly important in a global economy where we compete for new investment and capital.
Certain investments, which may include those by state-owned enterprises or sovereign wealth funds, will be considered by the relevant competition authorities to assess whether they raise competition concerns. If a particular case gives rise to legitimate matters of public interest other than competition, UK Ministers have formal powers to intervene. In addition, the Takeover Panel has effective disciplinary powers and enforcement powers which can be used if it believes the Takeover Code has been contravened.
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