Government blocks takeover of Graphene company by Chinese buyer – UKTN

An acquisition deal to rescue struggling graphene firm Versarien has been blocked by ministers over national security concerns.

Versarien, an AIM-listed advanced materials manufacturing group based in Gloucestershire, had been considering an acquisition deal that would see it bought by a “UK joint venture company” in partnership with Chinese group Anhui Boundary Innovative Materials Technology (BIMT).

Takeovers of British firms by Chinese buyers often have to be scrutinised by ministers under the National Security and Investment Act, passed in 2021 to prevent the acquisition of critical technology by international adversaries.

Following a review, Versarien has said the Chancellor of the Duchy of Lancaster decided against the sale, nor the tangible use of the University of Manchester spinout’s assets for BIMT.

The decision was made on the grounds of “maintaining the security of know-how and intellectual property relating to the production and use of graphene with dual-use applications”.

Graphene is an extremely versatile, strong and thin material invented at the University of Manchester.

According to Versarien, the purpose of the joint venture was to import BIMT’s “graphene, carbon nanotubes and silicon-carbon anode materials to the UK for sale, with a particular focus on electric vehicle and other battery technologies, technical support and research and development of new nanomaterial enhanced composite products for the automotive sector”.

Versarien listed on the AIM in 2013 and has seen its share price fall more than 99% since its initial public offering. The firm lost over £4m in 2024 as per its most recent accounts.

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