Wednesday, 20 June 2018

Chinese takeover of British defence company blocked

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In a move that is bound to infuriate Beijing, ministers have blocked the Chinese takeover of a British defence company in a new military secrets row.

Business Secretary Greg Clark specifically stepped in to halt the purchase of the company, Northern Aerospace Limited.

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                              Greg Clark

Mr Clark's action on “national security grounds” was thought to be on the urgent advice of Defence Secretary Gavin Williamson.

Northern Aerospace manufactures systems and wing parts for RAF and US Air Force planes, including the Eurofighter Typhoon and jumbo C-17 transport jet, as well as a range of unmanned drones.

It was about to be purchased by a subsidiary of the Chinese giant Shaanxi Ligeance Mineral Resources.

However, defence bosses raised serious fears that the sale would allow the Chinese government access to a host of sensitive design secrets.


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