Business Secretary Rees-Mogg set to intervene in French swoop on Aveva

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Company secretary Jacob Rees-Mogg wants to intervene in French attack on British tech giant Aveva

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Jacob Rees-Mogg stands ready to intervene in an attack on one of Britain’s leading technology companies by French giant Schneider Electric.

The Business Secretary will consider whether the proposed acquisition of Aveva by a foreign predator raises national security concerns.

Fears have already been expressed about Schneider’s joint venture with Chinese conglomerate Delixi Electric.

Tech buyout: Business Secretary Jacob Rees-Mogg to consider whether proposed foreign predator takeover of Aveva raises national security concerns

Tech buyout: Business Secretary Jacob Rees-Mogg to consider whether proposed foreign predator takeover of Aveva raises national security concerns

Critics say that if Aveva is acquired, its own technology risks falling into Chinese hands. A source close to Rees-Mogg said if the deal raises any concerns he will “have to look into it.”

A government spokesman said: “While commercial transactions are primarily a matter for the parties involved, the government has powers under the National Security and Investment Act to monitor and intervene in acquisitions where necessary.”

Schneider is said to be in talks with authorities about national security aspects. On Wednesday, the company struck a deal to buy the 41 percent of Aveva it doesn’t own, for 3,100 pence a share.

The offer values ​​Aveva at nearly £9.5bn and is a 41 percent premium to its closing price on August 23, the last trading day before Schneider confirmed it was developing an offer.

But it is lower than the 4420p Aveva stock traded against a year ago, raising fears that it is being bought cheaply.

Aveva is one of the few remaining technology companies on the London Stock Exchange. It provides software to help engineers design major industrial projects and products that help run factories.

Virus protection company Avast left this year after a £7bn merger with Nortonlifelock.

Micro Focus International is also being picked up by Canadian software company Open Text.

City fund manager Rory Alexander said his M&G Investments, a top 25 shareholder, is against a deal.

He said: ‘M&G is materially unimpressed by Schneider’s opportunistic £31 offer and we are disappointed that the Aveva board has recommended the offer.’