, Secretary of State for
Business, Energy and Industrial Strategy, told the House of
Commons today he would "look carefully at the report of the BEIS
Select committee" which would be one of the pieces of evidence he
would take into account when considering to call in the bid for
GKN by Melrose.
He was replying to a question by , chairman of the BEIS Select
Committee, who said the committee had heard powerful evidence why
the government should call in the Melrose bid on national
security ground.
, Shadow BEIS Minister, paid
tribute to GKN, in particular its innovative battery technology,
and questioned its takeover by Melrose. Mr Clark said the
2002 Enterprise Act stated that ministers could only intervene in
mergers on the grounds of national security, financial stability
and media plurality. The governments reforms of corporate
governance meant GKN had longer to prepare their defence,
preventing the kind of smash and grab raid suffered by Cadbury’s.
Provision had been made for legally binding undertakings to be
given in takeover bids and “I would be surprised and disappointed
if any bidder did not make their intentions clear, extensive and
legally binding.”
, in whose constituency GKN
employs 220 people, said the hostile takeover bid did raise
national security implications, giving the Secretary of State
power to intervene. Mr Clark replied he had to make sure he did
not prejudice any assessment he had to make.
