Perpetuus: China-linked takeover of Welsh tech firm 'abandoned'

In the 2D-material graphene, carbon atoms are arranged in a honeycomb structure

A China-linked takeover of a Swansea-based tech firm has been abandoned, according to a companies watchdog.

The Competition and Markets Authority (CMA) had been ordered by the UK government to conduct a national security review into the purchase.

But the shareholders of Perpetuus, which makes graphene, have told the CMA that the acquisition has been cancelled.

Graphene has been called a "wonder material" stronger than diamond.

UK Business Secretary Kwasi Kwarteng ordered a phase two security review into the takeover by Shanghai Kington Technology last month.

But this was cancelled after the CMA said it received "written assurances from shareholders holding of the shares in Perpetuus Advanced Materials plc that the contemplated arrangements have been abandoned".

In a tweet Mr Kwarteng said: "The UK government monitors the market at all times to identify acquisitions of potential national security interest. We will intervene where necessary."

It comes after Mr Kwarteng ordered a separate security review into Nexperia's takeover of Newport Wafer Fab - the UK's largest computer chip factory.