Ultra Electronics takeover raises questions about threats to national security

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 it will “closely monitor” the deals, which has prompted criticism from the opposition, with Labour’s shadow business minister Chi Onwurah calling on Whitehall to do “far more than making weak and vague noises to protect [companies such as Ultra]”. 

“Serious questions remain about potential threats to national security, the business model of the new owners, and future governance and operational freedoms,” she said. “The Conservatives have repeatedly failed to protect British businesses from takeovers that might compromise our national security and economic interests. Labour would introduce a robust takeover regime to support and grow our world class industries.” The opposition further pointed out that both Ultra Electronics and Meggitt are critical to the operations of the British armed forces, and the government may block takeovers of such firms on several grounds, such as any risk to national security.

Meanwhile, sharing the position of the government in this regard, a spokesperson noted that “national security is of paramount importance”, which is why London is introducing “a robust new investment screening regime that will strengthen our powers to stop hostile actors in their tracks while ensuring the UK remains an attractive place to do business”. 

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