Acquisition of GE Oil & Gas Marine & Industrial UK Ltd and GE Steam Power Ltd by EDF Energy Holdings Ltd via its wholly owned subsidiary, GEAST UK Ltd: notice of Final Order
Published 7 August 2023
© Crown copyright 2023
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1. The Secretary of State has made a Final Order pursuant to section 26 of the National Security and Investment Act 2021 (“the Act”), which comes into force on 7 August 2023.
2. The Parties who are subject to the order are:
i.EDF Energy Holdings Limited;
ii.GEAST UK Limited;
iii.GE Oil & Gas Marine & Industrial UK Limited; and
iv.GE Steam Power Limited.
3. GEAST UK Limited, a wholly owned subsidiary of EDF Energy Holdings Limited, will gain control of the qualifying entities, GE Oil & Gas Marine & Industrial UK Limited and GE Steam Power Limited, upon completion by increasing the percentage of shares held in GE Oil & Gas Marine & Industrial UK Limited and GE Steam Power Limited from less than 75% to 75% or more (“the Acquisition”).
4. The Acquisition constitutes a trigger event under section 8(2)(c) of the Act.
5. The Secretary of State considers that a risk to national security will arise because of the critical national security and defence capabilities relating to naval propulsion systems which are delivered through the GE Oil & Gas Marine & Industrial UK Limited and GE Steam Power Limited UK facility.
6. The final order requires the Parties to:
i.meet physical and information security requirements;
ii.implement governance arrangements to protect sensitive information;
iii.place a HM Government-appointed board observer on the board of GEAST UK Limited and allow the board observer to observe meetings of the boards of GE Oil & Gas Marine & Industrial UK Limited and GE Steam Power Limited;
iv.establish a steering committee of the GEAST UK Limited board to provide oversight of compliance with security requirements and protection of sensitive information;
v.maintain capacity and capability in respect of critical Ministry of Defence programmes in the UK.
7. The final order also includes a provision that, in circumstances where the Final Order is breached in a manner serious enough to jeopardise the fulfilment of critical Ministry of Defence programmes, the Secretary of State has the power to step in and take operational control of and/or takeover the relevant business or part of the business necessary for the fulfilment of those Ministry of Defence programmes.
8. The Secretary of State considers that the Final Order is necessary and proportionate to mitigate the risk to national security.