§ Mr. PawseyTo ask the Chancellor of the Duchy of Lancaster whether, in the light of his decision to accept the 345W Monopolies and Mergers Commission's ruling on the level of the stake in BP held by the Kuwait Investment Office, he will make a statement on his policy towards the size of shareholding by foreign investors in the United Kingdom companies which will be permitted in future.
§ Mr. Maude[holding answer 26 October 1988]: We shall continue to consider qualifying mergers under the Fair Trading Act 1973 on a case by case basis, without discriminating between acquisitions made by UK and overseas enterprises. The Director General of Fair Trading will continue to examine any acquisition of shares in order to establish whether it constitutes a qualifying merger under the Act.
§ Mr. PawseyTo ask the Chancellor of the Duchy of Lancaster what is his assessment of the repercussions on foreign investors operating in the City of London of the decision to order the Kuwait Investment Office to reduce its holding in BP; and if he will make a statement.
§ Mr. Maude[holding answer 26 October 1988]: Each merger situation is considered individually, on its merits, under the provisions of the Fair Trading Act 1973. The recommendations of the MMC on the Kuwait Investment Office holding in BP applied to one holding in one company, and were reached in the light of special and unusual circumstances. The Government's general attitude towards investment by foreigners in the UK is to welcome it.
§ Mr. PawseyTo ask the Chancellor of the Duchy of Lancaster what assessment he has made, in the light of the decision to order the Kuwait Investment Office to reduce its stake in BP, of the likelihood of other countries taking reciprocal action against British companies holding substantial stakes in overseas companies; and if he will make a statement.
§ Mr. Maude[holding answer 26 October 1988]: I am not aware of any reason to suppose that UK companies with overseas investments are being asked to reduce those investments.