UK blocks Chinese aerospace sale after security probe: Reuters
Summary
The UK Competition and Markets Authority (CMA) launched an investigation last month into the 44 million pound sale of the company to a unit of China’s Shaanxi Ligeance Mineral Resources Co. (000697.SZ), issuing a notice halting the disposal.That followed a formal intervention by the British Secretary of State for Business, Energy and Industrial Strategy under rules allowing it to take action on national security grounds.Better Capital said Northern Aerospace had clearly demonstrated that there were no competition issues in the deal and that all matters raised by the Ministry of Defence had been satisfactorily dealt with.“NAL and (Better Capital-unit) the GP have been advised that there are national security issues but neither has any knowledge of their nature and both remain ignorant as to how the disposal of NAL could give rise to any transaction-specific concern,” the company said.A string of acquisitions by Chinese companies across the world has fueled security concerns in countries including Germany, the United States and Canada, leading to some high-profile blocks on deals.