The UK has imposed restrictions on the Chinese takeover of a shell company worth £1, saying the move mitigates national security risks.
In a notice of final order (pdf) published on Dec. 6, the Department for Business, Energy & Industrial Strategy (BEIS) said Business Secretary Grant Shapps considers the takeover of XRE Alpha Limited by China Power International Holding Limited a risk in relation to the security of an important UK electricity asset and the security of services provided to the UK National Grid.
China Power International Holding Limited, a wholly owned subsidiary of China’s state-owned State Power Investment Corporation, will acquire 90 percent shareholding in XRE Project Alpha Limited, the Hong Kong-based parent company of XRE Alpha Limited, the notice said….