UK raises national security concerns over EDF deal to buy GE unit
Reuters
Published Aug 07, 2023 19:58
Updated Aug 07, 2023 22:25
LONDON (Reuters) -The British government on Monday raised potential national security concerns from French state-owned utility EDF (EPA:EDF)'s deal to buy General Electric (NYSE:GE)'s nuclear turbine business, ordering the companies to meet certain security needs.
EDF's bid to acquire the GE Steam Power business from the U.S. conglomerate was cleared by Britain's antitrust regulator in May 2023 after an initial investigation.
"The Secretary of State considers that a risk to national security will arise because of the critical national security and defence capabilities relating to naval propulsion systems which are delivered through (the GE unit)," the government said.
The government considers that the order is "necessary and proportionate to mitigate the risk to national security," the statement added.
Issuing a final order on EDF's deal to buy the unit via a subsidiary called GEAST UK, the government asked the companies to meet physical and information security requirements and implement governance arrangements to protect sensitive information.
It said a government-appointed board observer must be placed on the board of GEAST UK to observe meetings, while also asking the companies to maintain capacity and capability in respect of critical Ministry of Defence programmes in Britain.
EDF declined to comment and GE did not immediately respond to a request for comment.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.