Business Secretary puts restrictions on Chinese takeover of energy company

The government has set conditions for the purchase of XRE Alpha by a Chinese state-owned company

The Business Secretary has imposed restrictions on the takeover of a company linked to UK power generation by a Chinese state-owned company.

Grant Shapps has powers under the National Security and Investment Act to intervene in transactions on national security grounds where necessary.

The order says China Power International Holding’s 90% takeover of XRE Project Alpha, poses a national security risk relating to the UK’s grid.

The document states: “The Secretary of State considers that a risk to national security arises relating to the security of an important UK electricity asset and the security of services provided to the UK National Grid.”

The conditions imposed by the Business Secretary restrict the management of certain services to government-approved operators.

The order also restricts the information that can be shared with China Power International Holding.

A government spokesperson told ELN: “The government is required to publish a Final Order Notice when imposing remedies on a particular acquisition and has done so today.”

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