§ Mr. GryllsTo ask the Chancellor of the Duchy of Lancaster what is his policy on exercising his powers under the Industry Act 1975 to prohibit a foreign takeover of a British company by a company headquartered in a country which places obstacles in the way of takeovers of their companies by foreign firms.
§ Mr. ButcherThe powers in part II of the Industry Act 1975 relate only to changes of control of important manufacturing undertakings. These powers have never been used. The Government consider that the powers under the Fair Trading Act 1973 are a more appropriate means of implementing mergers policy. In deciding whether to refer a merger to the Monopolies and Mergers Commission under the merger provisions of this Act, one factor that may be relevant in some cases is the extent to which United Kingdom companies have reciprocal 197W freedom to acquire companies based in the home country of the prospective acquiror. Each case must, however, be considered individually on its own merits.