Safeguarding growth strategy from foreign investment risk

Foreign investment continues to drive growth, but leadership teams face risks that extend beyond financial performance.

The recent acquisition of Plessey Semiconductors by Haylo Labs, part-financed through a Hong Kong subsidiary of Chinese technology group Goertek, highlighted the challenges.

Although the arrangement passed review under the UK’s National Security and Investment Act (NSI Act), it raised wider questions about regulatory exposure and reputation.

Corporate Partner Simon Wilson spoke with Business Quarter to assess the fallout and share insights into how to navigate foreign capital investment.

Simon notes that the NSI Act has transformed the investment landscape.

“Perhaps the single most significant regulatory development in recent years affecting UK investment and M&A derives from the introduction of the National Security and Investment Act in 2022,” he says.

“The regime encompasses specified sectors and business areas deemed high risk and, having worked on transactions where this has surfaced as a potential issue, I can tell you that its scope is wider than you might first consider.”

Foreign capital can accelerate growth, but only if managed with foresight. The key is not securing the money, but protecting the company’s future.

You can read the full article via Business Quarter here: Are you safeguarding your growth strategy from foreign capital risk?