Categories: Politics

Cabinet: Merger of ‘viable’ companies only allowed after security test Related articles

Chip makers or companies responsible for water supply or payment transactions will soon have to give advance notice of any merger, acquisition or investment plans. The Investment Review Office (ITV) of the Ministry of Economy then assesses whether there is a risk to national security. If the assessment reveals risks, the government can make conditions attached to the proposed merger or acquisition and, in extreme cases, cancel the plans.

Chip makers or companies responsible for water supply or payment transactions will soon have to give advance notice of any merger, acquisition or investment plans. (Marijn Reichert/BNR)

The security test will apply to three types of companies and organizations in the Netherlands: viable suppliers, companies with “sensitive technology” and corporate campus administrators. Vital suppliers are so important to society that ‘failure or disruption can lead to serious social disruption’, the Cabinet reports. In addition to water supply, companies responsible for data and money traffic can also be considered.

Sensitive technology

Companies with “sensitive technology” might include chip manufacturers (such as ASML) or companies that produce high-quality information security products. They often have knowledge and information about the technology used, which – if it falls into the wrong hands – can have consequences for national security. “A malicious party could, for example, gain control of such a Dutch company through an investment and such knowledge could then pose a risk to national security,” the government said.

Campuses where companies, knowledge institutes and governments work together on technologies and applications of economic and strategic importance may soon fall under the law.

Security key

On Friday, the Cabinet approved the technical drafting of the Investment, Mergers and Acquisitions (Safety Test) Act (Vifo). The law by Ministers Micky Adriaansens (EZ) and Dilan Yeşilgöz (Justice and Security) was adopted in April this year, but the security test has now been further elaborated. Now it has been sent to the State Council for an opinion. Only then will the decision be made public.

Author: ap
Source: BNR

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