The Small Business, Enterprise and Employment Act 2015 introduced a new role to all United Kingdom companies, limited liability partnerships, CIC's and SE companies, called 'persons with significant control'.
This study looks at all companies registered in the United Kingdom where a foreign concern has control where control is defined as:
Ownership of shares - more than 50%
Ownership of voting rights - more than 50%
Right to surplus assets - more than 50%
Has significant influence or control
Right to appoint and remove members or persons
There are 24,292 companies that are controlled by foreign concerns in this way. There are 16,661 foreign controlling concerns.
There has been a long history of foreign ownership: British Oxygen by Linde of Germany, Cadbury by Kraft of the USA, Boots by Walgreens of the USA, Derby Rail Works by Bombardier of Canada, Worldpay by Vantiv of the USA, Ladbrokes Coral by GVC of the Isle of Man, Aldermore by FirstRand of South Africa, Holland & Barrett by Letterdone of Luxembourg, Body Shop by Natura Cosmeticos of Brazil, Innovia by CCLSyrinix of Canada, Rockspring by Patrizia Immobilien of Germany, Cott's Bottling by Refresco of the Netherlands, Jimmy Choo by Michael Kors of the British Virgin Islands, Novae Group by Axis Capital of Bermuda, Micheldever by Sumitomo Rubber of Japan, Lavendon by Loxam of France, Parkdean Resorts by Onex of Canada, Autodata by Solera of the USA, Office Group by Blackstone of the USA and Audiotronix by Astrog of France.
Famous brands, now foreign owned, are Weetabix, Branston Pickle, Terry's Chocolate, Tetley and Typhoo teas, Newcastle Brown Ale, Glenlivet, Scottish Power, Thames Water, Bentley and Rolls-Royce cars, Arriva buses, HP Sauce, Walker Crisps, Hartley's Jam, Hovis bread, Jaguar cars and Bass Ales.
These foreign owned companies contributed £324 billion or 27 percent in approximate gross value added (aGVA) to the UK's non-financial business economy. The non-financial business economy accounts for two-thirds of the UK economy in terms of aGVA.
Two concerns have been raised recently. Firstly, knowing the true beneficial owners of UK companies as exemplified in the Panama Papers; and secondly, the ease at which foreign companies can acquire UK companies. The former will benefit from further disclosure from their respective company registries, and the latter as businesses look towards to government to create a fairer model of foreign corporate, acquisition.
Author Biography:
Born in Cullercoats, a graduate of the London School of Economics, he was a research assistant at the University of Essex, assistant at the ECPR Summer School, stipendiat at the Institut für Höhere Studien, Vienna, and was a research fellow at the University of Birmingham. As director at Faxtel International Inc, he published over 30 studies on British industry, the data sections of some are in the British Library. Married with two grown up children, he has now spent some 40 years in corporate research. He has varied interests, from the bagpipes to the works of the artist Robert Jobling; a keen radio amateur, his call sign being G7JDB, and the proud owner of a 1972 Volkswagen Kombi, registered 8VW, which has travelled throughout Europe, from the Tatra mountains of southern Poland to the northernmost tip of Norway.
