The British government has blocked a Chinese-owned company’s £63m takeover of Nexperia, a Wales-based microchip maker, calling it a national security risk, reports the Daily Mail.
Last week Business Secretary Grant Shapps issued an order “requiring Nexperia to sell at least 86% of Newport Wafer Fab to prevent against potential national security risks.”
Nexperia said it was “shocked” by the decision and will appeal.
Under national security legislation introduced in January to prevent ‘those who may do us harm from acquiring parts of the UK’s economy’, the deal was called in for a review. As the new legislation covers deals only on or after November 12, 2020, Nexperia will retain the 14 per cent it bought in 2019.
Shapps said development of the Newport site by Nexperia could “undermine U.K. capabilities” in the sector.
Nexperia said it was “shocked” by the decision.
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