UK to conduct in-depth review of Shanghai Kington’s acquisition of Welsh company Perpetuus Group on national security grounds

Name: British warship Queen Elizabeth makes Singapore stop to reaffirm Asia presence
Uploaded: 2022-05-12T11:35:10.000Z
Duration: 1 min 44 s
Description: British warship Queen Elizabeth makes Singapore stop to reaffirm Asia presence

UK Business Secretary Kwasi Kwarteng has called for a Phase 2 review of the Perpetuus Group deal

Perpetuus is active in the commercial manufacture of graphene and other nano materials, which the UK says have a range of strategic applications

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Kwasi Kwarteng, the UK business secretary, says the interest of national security ‘continues to be relevant and should be subject to further investigation’. Photo: Bloomberg

Chad Brayin London

Published: 7:35pm, 12 May 2022

The British government has called for an in-depth review of a planned acquisition by China’s Shanghai Kington Technologies of a Welsh graphene maker on national security grounds.

Kwasi Kwarteng, the United Kingdom’s business secretary, has written to the Competition and Markets Authority (CMA), ordering a so-called Phase 2 investigation of the proposed acquisition of Perpetuus Group by a group led by Shanghai Kington, which researches and develops products based on polyamide fibres. Such investigations can last six to eight months.

“The UK remains firmly open for business. However, we have been clear that foreign investment must not threaten our national security,” Kwarteng said in a statement. “I have considered the evidence presented to me and asked the [CMA] to undertake an in-depth investigation so we can fully consider the implications of this transaction.”

Graphene can be used for a variety of purposes, including strengthening plastics and making aeroplane wings lighter.

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British warship Queen Elizabeth makes Singapore stop to reaffirm Asia presence

The CMA previously conducted a Phase 1 review, finding in a report published on Wednesday that the deal would not result in “substantial lessening” of competition in Britain.

A representative of Shanghai Kington could not be immediately located for comment on Thursday.

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