UK raises national security concerns over EDF deal to buy GE unit

LONDON, Aug 7 (Reuters) – The British government on Monday raised possible national security concerns by French utility EDF. (EDF.PA) agreement to buy General Electric (GEN.N) nuclear turbine business, ordering companies to meet certain safety needs.

EDF’s offer to acquire the US conglomerate’s GE Steam Power business was approved by Britain’s antitrust regulator in May 2023 after an initial investigation.

“The Secretary of State believes that a national security risk will arise from critical defense and national security capabilities related to naval propulsion systems being delivered through (the GE unit),” the government said.

The government considers the order “necessary and proportionate to mitigate the risk to national security,” the statement added.

In issuing a final order on EDF’s agreement to buy the unit through a subsidiary called GEAST UK, the government asked the companies to comply with physical and information security requirements and put in place governance arrangements to protect information. confidential.

He said a government-appointed board observer should be placed on the GEAST UK board to observe meetings, while calling on companies to maintain capacity and capacity with regard to critical MoD programs in Britain.

EDF declined to comment and GE did not immediately respond to a request for comment.

Reporting by Muvija M in London and Ananta Agarwal in Bengaluru; Edited by Paul Simao and Grant McCool

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