Davina Garrod and Jasper Helder Quoted in IFLR on UK’s National Security and Investment Bill

Akin Gump partners Jasper Helder and Davina Garrod have been quoted in the IFLR article “PRIMER: UK National Security and Investment Bill.” The article discusses this new law in the United Kingdom, which seeks to strengthen the government’s powers to screen investment activity based on national security concerns.

According to the article, the genesis of the new National Security and Investment Bill stems from both a combination of long-term pressures as well as the immediate impact of the pandemic. There is further speculation, it says, that the bill is part of a global pushback against Chinese investments, including growing protectionism from hostile foreign takeovers.

“China is absolutely front and center of what the U.K. government currently seems most worried about,” said Garrod, “but it’s not all about China. Links with any state that might be considered in some way ‘hostile’ or otherwise perceived to be at odds with the U.K.’s world view could be viewed as a risk to national security.”

For those countries that are usually under scrutiny, Garrod predicts there will not be a significant difference. “In the big cross-border deals we work on,” she said, “we’re looking at merger control and [foreign direct investment] approvals in 10 to 15 different jurisdictions. It’s the likes of China, India and Mexico that tend to be the timing outliers, even where there are no substantive issues in those jurisdictions.”

The article says the bill has led some to question whether Britain will be able to hold on to its reputation as one of Europe’s friendliest countries in which to do business. Helder responded, “It’s something that many clients have accepted. It’s the sign of the times in a world where countries’ political and foreign policy objectives are more polarized.”

Helder warned, though, that parties should not assume their deal is out of scope. He referenced a recent deal in the hospitality sector “where the U.S.’ CFIUS [Committee on Foreign Investment in the US] stepped in and imposed conditions because it included U.S. consumers’ personal information.”