The UK government has announced a ban on foreign governments owning British newspapers and news magazines. This announcement follows concerns over a proposed Daily Telegraph and Spectator takeover by a United Arab Emirates-backed investment firm, RedBird IMI.

<h2>Why is such a ban necessary?</h2>

As per a BBC report, the proposed ban, to be introduced as an amendment to the Digital Markets, Competition and Consumers Bill, would "deliver additional protections for a free press".&nbsp;

Lord Parkinson of Whitley Bay announcing the ban said the new law would "rule out newspaper and periodical news magazine mergers involving ownership, influence or control by foreign states".

Labour has indicated support for the change, which comes amidst cross-party pressure on the government to address the issue.&nbsp;

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As per Lord Parkinson, the ban would not apply to broadcasters.

The proposed ban will refer proposed media mergers involving foreign states to the Competition and Markets Authority for investigation, with the Secretary of State required to block or unwind any merger resulting in foreign state ownership, influence, or control, he explained.

The move comes as RedBird IMI continues its efforts to take control of the Daily and Sunday Telegraph newspaper titles and Spectator magazine. The fund, largely owned by Sheikh Mansour of the UAE, faced growing political opposition.

<h2>RedBird IMI reacts</h2>

Reacting to the government's decision, a spokesperson for RedBird IMI said they were "extremely disappointed by today's development" and stated they "remain committed" to investing in global media.

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"We will now evaluate our next steps, with commercial interests continuing to be the sole priority."

"To date, Redbird IMI has made six investments across the UK and US, and we believed the UK's media environment was worthy of further investment.

"As with each of our deals, we have been clear that the acquisition of The Telegraph and The Spectator has been a fully commercial undertaking."

However, the company's bid for the newspapers looks likely to fail, reported BBC citing sources close to the matter.

Watch |&nbsp;UK MPs warn against UAE takeover of Telegraph

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Andrew Neil, chairman of the Spectator, also noted that the UAE bid "now looks dead in the water". Former Daily Telegraph editor Lord Moore of Etchingham remarked that such a rule should have existed from the start to provide clarity on proposed takeovers.

Baroness Stowell, chair of the Communications and Digital Committee, emphasised the importance of preventing foreign powers from acquiring UK news media organizations.&nbsp;

"Allowing foreign governments to own such a critical and sensitive part of our nation would damage public confidence in all of us yet further if it was allowed to happen," she said.

(With inputs from agencies)

The UK government has announced a ban on foreign governments owning British newspapers and news magazines. This announcement follows concerns over a proposed Daily Telegraph and Spectator takeover by a United Arab Emirates-backed investment firm, RedBird IMI.

The UK government has announced a ban on foreign governments owning British newspapers and news magazines. This announcement follows concerns over a proposed Daily Telegraph and Spectator takeover by a United Arab Emirates-backed investment firm, RedBird IMI. Why is such a ban necessary? As per a BBC report, the proposed ban, to be introduced as an amendment to the Digital Markets, Competition and Consumers Bill, would "deliver additional protections for a free press". Lord Parkinson of Whitley Bay announcing the ban said the new law would "rule out newspaper and periodical news magazine mergers involving ownership, influence or control by foreign states". Labour has indicated support for the change, which comes amidst cross-party pressure on the government to address the issue. Also read | Britain redefines 'extremism' in the face of rising hate crimes, critics call it a threat to free speech As per Lord Parkinson, the ban would not apply to broadcasters. The proposed ban will refer proposed media mergers involving foreign states to the Competition and Markets Authority for investigation, with the Secretary of State required to block or unwind any merger resulting in foreign state ownership, influence, or control, he explained. The move comes as RedBird IMI continues its efforts to take control of the Daily and Sunday Telegraph newspaper titles and Spectator magazine. The fund, largely owned by Sheikh Mansour of the UAE, faced growing political opposition. RedBird IMI reacts Reacting to the government's decision, a spokesperson for RedBird IMI said they were "extremely disappointed by today's development" and stated they "remain committed" to investing in global media. Also read | UN report finds Israel's killing of journalist in Lebanon a clear violation of international law "We will now evaluate our next steps, with commercial interests continuing to be the sole priority." "To date, Redbird IMI has made six investments across the UK and US, and we believed the UK's media environment was worthy of further investment. "As with each of our deals, we have been clear that the acquisition of The Telegraph and The Spectator has been a fully commercial undertaking." However, the company's bid for the newspapers looks likely to fail, reported BBC citing sources close to the matter. Watch | UK MPs warn against UAE takeover of Telegraph Andrew Neil, chairman of the Spectator, also noted that the UAE bid "now looks dead in the water". Former Daily Telegraph editor Lord Moore of Etchingham remarked that such a rule should have existed from the start to provide clarity on proposed takeovers. Baroness Stowell, chair of the Communications and Digital Committee, emphasised the importance of preventing foreign powers from acquiring UK news media organizations. "Allowing foreign governments to own such a critical and sensitive part of our nation would damage public confidence in all of us yet further if it was allowed to happen," she said. (With inputs from agencies)

UK bans foreign ownership of newspapers, putting UAE-backed takeover of Telegraph in jeopardy

In a major shake-up of foreign ownership laws aimed at attracting investment into an economy reeling from the coronavirus and a decline in oil prices, the government of the United Arab Emirates announced by decree today that foreign investors can fully own local companies without the need for an Emirati sponsor.

Sheikh Khalifa bin Zayed Al Nahyan, president of the UAE, issued the decree, which replaces the Commercial Companies Law No. 2, passed in 2015.

Until now, companies in the UAE had needed a certain shareholding to be held by Emirati nationals, or an Emirati agent, depending on what type of company it was.

“The amendments allow foreign entrepreneurs and investors to fully establish (own 100 per cent) and own companies without any nationality requirements,” state news agency WAM said.

“The condition requiring a foreign company wishing to open a branch in the country to have an agent from among the country’s citizens has also been cancelled,” it added.

The UAE approved a new foreign investment law in 2018 that would allow foreigners to own up to 100% of some businesses and foreigners could already own up to 100% of those registered in designated business parks known as "free zones".

As an oil and gas producer, the UAE economy has been hit by the coronavirus pandemic and low oil prices, prompting the International Monetary Fund to forecast in October that the Gulf`s second-largest economy could shrink by 6.6% this year.

(With inputs from agencies)

In a major shake-up of foreign ownership laws aimed at attracting investment into an economy reeling from the coronavirus and a decline in oil prices, the government of the United Arab Emirates announced by decree today that foreign investors can fully own local companies without the need for an Emirati sponsor.

In a major shake-up of foreign ownership laws aimed at attracting investment into an economy reeling from the coronavirus and a decline in oil prices, the government of the United Arab Emirates announced by decree today that foreign investors can fully own local companies without the need for an Emirati sponsor. Sheikh Khalifa bin Zayed Al Nahyan, president of the UAE, issued the decree, which replaces the Commercial Companies Law No. 2, passed in 2015. Until now, companies in the UAE had needed a certain shareholding to be held by Emirati nationals, or an Emirati agent, depending on what type of company it was. “The amendments allow foreign entrepreneurs and investors to fully establish (own 100 per cent) and own companies without any nationality requirements,” state news agency WAM said. “The condition requiring a foreign company wishing to open a branch in the country to have an agent from among the country’s citizens has also been cancelled,” it added. The UAE approved a new foreign investment law in 2018 that would allow foreigners to own up to 100% of some businesses and foreigners could already own up to 100% of those registered in designated business parks known as "free zones". As an oil and gas producer, the UAE economy has been hit by the coronavirus pandemic and low oil prices, prompting the International Monetary Fund to forecast in October that the Gulf`s second-largest economy could shrink by 6.6% this year. (With inputs from agencies)

UAE opens up the economy, allows 100% foreign ownership of firms: Report

India is open to listing ailing state carrier Air India, a government source said&nbsp;on Wednesday, after failing to attract buyers for a 76 percent stake in the company.

While the government is considering several proposals related to reviving the divestment process, it will not allow complete foreign ownership of the airline, the source said, declining to be named before a final decision is reached.

One of the proposals could involve the government retaining a share in the debt-laden carrier and selling it at a later date so it can capitalise on any financial upside that may occur from listing the airline, the source said.&nbsp;

The government may also consider reducing the debt it passes on to potential buyers and restructuring the large workforce, another senior government official told Reuters.

"We will take a decision in next few days on changing conditions before inviting fresh bids," the official said, adding that the government is committed to selling its stake in the national carrier in the current financial year but could defer it if it fails to get the right price.

The government in March finalised plans to divest a majority stake in Air India and offload about $5.1 billion of its debt, but prospective buyers stayed away, with some citing onerous terms as a reason for their lack of interest.

The lack of buyers in a booming aviation market underlines the challenges the government faces in fixing the debt-laden national carrier, and is a setback for Prime Minister Narendra Modi`s credentials as a reformer willing to step away from running money-losing businesses.

Air India, known for its Maharaja mascot, has some of India`s most lucrative international and domestic landing and parking slots that are key for airlines.

While a buyer would have got management control and gained access to more than 2,500 international slots and over 3,700 domestic slots, it would also have been required to take on Air India`s 27,000 employees, 40 percent of whom are permanent staff.&nbsp;

The terms had also stipulated that the government would have continued to hold a 24 percent stake, with the need for the bidder to abide by conditions, not yet detailed, designed to safeguard employee interests.

The government will soon arrange a bank loan for Air India, the second official said, to meet working capital needs and buy time for a few months before inviting fresh bids.

"The heavens would not fall if the stake sale is deferred to the next fiscal year," the official said adding that ahead of national elections next year, the government could not take the risk of selling the national carrier at a low price.&nbsp;

This could cost the government politically and hurt the process of further privatisation of other state companies, he said.

Government will not allow complete foreign ownership of the airline

India is open to listing ailing state carrier Air India, a government source said on Wednesday, after failing to attract buyers for a 76 percent stake in the company. While the government is considering several proposals related to reviving the divestment process, it will not allow complete foreign ownership of the airline, the source said, declining to be named before a final decision is reached. One of the proposals could involve the government retaining a share in the debt-laden carrier and selling it at a later date so it can capitalise on any financial upside that may occur from listing the airline, the source said. The government may also consider reducing the debt it passes on to potential buyers and restructuring the large workforce, another senior government official told Reuters. "We will take a decision in next few days on changing conditions before inviting fresh bids," the official said, adding that the government is committed to selling its stake in the national carrier in the current financial year but could defer it if it fails to get the right price. The government in March finalised plans to divest a majority stake in Air India and offload about $5.1 billion of its debt, but prospective buyers stayed away, with some citing onerous terms as a reason for their lack of interest. The lack of buyers in a booming aviation market underlines the challenges the government faces in fixing the debt-laden national carrier, and is a setback for Prime Minister Narendra Modi`s credentials as a reformer willing to step away from running money-losing businesses. Air India, known for its Maharaja mascot, has some of India`s most lucrative international and domestic landing and parking slots that are key for airlines. While a buyer would have got management control and gained access to more than 2,500 international slots and over 3,700 domestic slots, it would also have been required to take on Air India`s 27,000 employees, 40 percent of whom are permanent staff. The terms had also stipulated that the government would have continued to hold a 24 percent stake, with the need for the bidder to abide by conditions, not yet detailed, designed to safeguard employee interests. The government will soon arrange a bank loan for Air India, the second official said, to meet working capital needs and buy time for a few months before inviting fresh bids. "The heavens would not fall if the stake sale is deferred to the next fiscal year," the official said adding that ahead of national elections next year, the government could not take the risk of selling the national carrier at a low price. This could cost the government politically and hurt the process of further privatisation of other state companies, he said.

India open to listing Air India after failed divestment: Government source

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