The business secretary has used the new government powers on national security to intervene in a possible takeover of BT by its largest shareholder, the French billionaire Patrick Drahi.
BT said Kwasi Kwarteng would investigate the measure by Drahi telecom group Altice after increasing its stake in BT from 12.1% to 18% in mid-December.
Kwarteng has used the powers of “convocation” granted through the new National Security and Investment Act, which allow ministers to block transactions linked to important national assets and even cancel them retrospectively, if it is considered that harm national security.
These rules, which apply to key sectors such as communications, energy, defense and transport, came into force in January, and the government has described them as “the biggest shake-up of the UK’s national security regime for 20 years”. .
BT said it would “fully cooperate with this review”.
Drahi paid about £ 3.2 billion to increase his stake in BT and previously said he had no intention of bidding for BT, but that his position could change in certain circumstances, including if a third party bid for BT. business.
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Kwarteng’s intervention comes months after the government warned it “would not hesitate to act” to protect BT from foreign takeover, if necessary.
The news that the business secretary would call for Altice’s stake in BT came a day after Kwarteng said he had launched an investigation into the proposed acquisition of the UK’s largest microchip maker, Newport Wafer Fab. of Nexperia, supported by China. This agreement will also be examined under the new law.
Kwarteng tweeted: “We welcome investment abroad, but it must not jeopardize British national security.”