Two Major Tech Deals Come Under UK Government Scrutiny

  • The U.K. will review Altice USA Inc's ATUS increased stake in BT Group plc BTGOF after Business Secretary Kwasi Kwarteng exercised new takeover powers focusing on national security, reports CNBC.
  • The company announced that the U.K. Business Secretary Kwasi Kwarteng is "calling in" its deal with Altice, which telecom magnate Patrick Drahi owns.
  • BT Group said it would fully cooperate with this review.
  • In a deal in December 2021, Altice increased its stake in BT from 12.1% to 18%.
  • British Telecommunications plc is a wholly-owned unit of BT Group plc and encompasses virtually all businesses and assets of the BT Group.
  • The National Security and Investment Act that came into force in January gives the U.K. government the power to scrutinize and intervene in business deals that have the potential to threaten national security.
  • Just a couple of hours ago, Kwarteng announced on Twitter to review Nexperia's takeover of Newport Wafer Fab. 
  • Nexperia is 100% owned by Chinese electronics maker Wingtech.
  • The U.K. government has 30 working days to carry out the assessments, extendable to 45 days.
  • Price Action: ATUS shares closed at $11.15 on Wednesday.

Posted In: M&ANewsLegalTechGeneralBriefs