National Security and Investment Act: Stuart Hatcher and Lianne Baker write for Investment Monitor
Corporate Partner, Stuart Hatcher, and Knowledge Development Lawyer, Lianne Baker, have written for Investment Monitor on the UK’s National Security and Investment Act.
In their article, entitled Will the UK’s National Security and Investment Act harm dealmaking?', Stuart and Lianne discuss the newly implemented act, which gives the UK government greater powers to scrutinise takeovers, and explore what the new act will mean for foreign investors.
"The act is broad-reaching, applying to both UK and overseas entities and assets, and will particularly impact overseas investors, although the key factor will be whether the investment is made in a sensitive industry by a party that could be considered a risk to national security."
For investors, practical advice would be:
- Think ahead – create a workstream to consider the act early on
- Challenge your lawyers to consider the act as soon as possible
- Work out how to best build specific due diligence on the act into your transaction
- Engage with the other side early regarding whether the act applies and how to deal with it in the context of deal documentation.