{"id":15786,"date":"2018-07-24T14:32:14","date_gmt":"2018-07-24T13:32:14","guid":{"rendered":"http:\/\/unitelive.org\/?p=15786"},"modified":"2020-11-12T12:58:35","modified_gmt":"2020-11-12T12:58:35","slug":"new-takeover-laws-fall-short","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=15786","title":{"rendered":"‘Not far enough’"},"content":{"rendered":"
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New government plans to strengthen takeover laws will fall short in stopping the short term-ism of speculative capital, Unite has said.<\/p>\n

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The plans, which will be subject to a 12-week consultation, were unveiled today (July 24) and will give the government greater powers to block or even unwind foreign takeovers that pose a threat to national security.<\/p>\n

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Currently, authorities can intervene only in takeovers of companies with a turnover of more than \u00c2\u014170m, or if the deal creates a group with more than 25 per cent of the market.<\/p>\n

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But if today\u00e2\u20ac\u2122s plans are approved, turnover thresholds could be done away with entirely, and the smallest takeover or even the sale of a single asset could be subject to review.<\/p>\n

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The new rules are expected to take aim in particular at Chinese and Russian technology companies in a bid to stop rivals of the West from acquiring sensitive technologies to protect Britain\u00e2\u20ac\u2122s national security interests. The rules are said to fall in line with regulations in other countries such as Australia, US and Japan.<\/p>\n

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So far this year, only one takeover deal was subject to a review on national security grounds, and the year before, only one as well. The government estimates that under the changes, 100 takeovers or transactions could be called in, with 50 being subject to intervention.<\/p>\n

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\u00e2\u20ac\u015bThese proposals will ensure we have the appropriate safeguards to protect our national security whilst ensuring our economy remains unashamedly pro-business and open to high levels of foreign investment in the future,\u00e2\u20ac\u0165 said business secretary Greg Clark.<\/p>\n

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While Unite \u00e2\u20ac\u201c which has long lobbied for stronger takeover laws — welcomed the intention behind the new rules, the union believes they fall far short of the regulation needed to\u00c2\u00a0protect\u00c2\u00a0British businesses’ long-term stability.<\/p>\n

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Unite is urging ministers to strengthen takeover laws so that wider stakeholder interests are taken into account \u00e2\u20ac\u201c including the interests of workers and their local communities. At present, takeovers can only be subject to review on national security, media plurality or financial security grounds.<\/p>\n

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\u00e2\u20ac\u015bThe penny seems to have finally dropped on the need for government to strengthen the UK\u00e2\u20ac\u2122s takeover laws on national security grounds. Whether ministers\u00e2\u20ac\u2122 proposals go far enough is doubtful,\u00e2\u20ac\u0165 said Unite assistant general secretary Steve Turner.<\/p>\n

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\u00e2\u20ac\u015bThe additional powers being proposed, while welcome, are limited to takeovers of British companies from overseas corporations,\u00e2\u20ac\u0165 he pointed out. \u00e2\u20ac\u015bThis would not have stopped UK based Melrose\u00e2\u20ac\u2122s hostile takeover of GKN, even though it was kicked over the line by US based hedge funds looking for a quick profit.<\/p>\n

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\u00e2\u20ac\u015bNor will today\u00e2\u20ac\u2122s proposals curtail future UK to UK takeovers driven by short-term city speculation rather than the need for long-term stability and investment,\u00e2\u20ac\u0165 Turner added.<\/p>\n

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\u00e2\u20ac\u015bThese plans need to be a prelude to a wider shake up of takeover laws that put long-term investment and workers\u00e2\u20ac\u2122 interests ahead of the predatory short-termism of hedge funds and speculative capital.<\/p>\n

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\u00e2\u20ac\u015bEnding the sale or transfer of voting shares and derivatives after a hostile bid has been announced, giving enhanced voting rights to long-term investors as well as meaningful engagement with the workforce and its unions are minimum protections that must be introduced,\u00e2\u20ac\u0165 he noted.<\/p>\n

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\u00e2\u20ac\u015bAnything less will be a missed opportunity to protect a fledgling industrial strategy by slamming the door on \u00e2\u20ac\u0098casino style\u00e2\u20ac\u2122 takeovers and stopping speculators from running riot with British companies.\u00e2\u20ac\u0165<\/p>\n","protected":false},"excerpt":{"rendered":"

New government plans to strengthen takeover laws will fall short in stopping the short term-ism of speculative capital, Unite has said.   The plans, which will be subject to a 12-week consultation, were unveiled today (July 24) and will give the government greater powers to block or even unwind foreign takeovers that pose a threat […]<\/p>\n","protected":false},"author":2,"featured_media":14486,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[624,874,690],"wps_subtitle":"New takeover rules fall short in stopping City short-termism","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/15786"}],"collection":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15786"}],"version-history":[{"count":2,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/15786\/revisions"}],"predecessor-version":[{"id":26027,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/15786\/revisions\/26027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/14486"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}