Perpetuus: Second security review of takeover of graphene firm
- Published
In the 2D-material graphene, carbon atoms are arranged in a honeycomb structure
A further security review of a planned China-linked takeover of a Swansea-based graphene firm has been announced.
UK ministers have ordered a Competition and Markets Authority (CMA) "phase two" investigation of the takeover of Perpetuus by the firm Taurus International and a Chinese academic.
In February, an initial CMA review concluded the deal would not mean a "substantial lessening of competition".
Graphene has been called a "wonder material" stronger than diamond.
It is described as being flexible like rubber but also one of the thinnest materials in the world.
Perpetuus, founded in 2013, also has two other sites, one in Newport and the other in Ammanford, Carmarthenshire.
According to government documents, external, the business department has concerns because it supplies "at least one quarter" of all graphene plasma goods in the UK.
On Wednesday, the department said that, after considering evidence from departments across the government, Business Secretary Kwasi Kwarteng had decided the interest of national security "continues to be relevant and should be subject to further investigation".
Business Secretary Kwasi Kwarteng said foreign investment must not threaten national security
The initial review instructed the CMA to investigate the involvement of Chinese academic Dr Zhongfu Zhou, "or any enterprise associated with him or the company" in the takeover.
Perpetuus's website describes Dr Zhou as one of the world's leading authorities in 2D materials.
Few details are available online about Taurus International, which was registered in London in 2020, or the proposed deal.
Mr Kwarteng said: "The UK remains firmly open for business, however we have been clear that foreign investment must not threaten our national security.
"I have considered the evidence presented to me and asked the Competition and Markets Authority to undertake an in-depth investigation so we can fully consider the implications of this transaction."
The CMA has six months, with the possibility of a two-month extension, to deliver its report to the minister.