UK Halts Versarien Asset Sale on Security Grounds

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The UK government has blocked the proposed sale of graphene-related assets by Versarien Plc, a Cheltenham-based advanced materials company, to a joint venture involving China’s Anhui Boundary Innovative Materials Technology, citing national security concerns.

The decision, announced on 21 August 2025, prohibits the transfer of both physical and intangible assets, including intellectual property and technical know-how with potential dual-use applications in military and civilian sectors. A final order published by the Cabinet Office stated the measure was “necessary and proportionate” to safeguard national security.

Versarien, listed on the London Stock Exchange (VRS.L), specialises in graphene, a material with applications across aerospace, electronics, and defence. The blocked sale would have granted the joint venture access to proprietary technology, prompting concerns about its potential use in sensitive areas.

The move reflects a broader trend of increased scrutiny of foreign investments under the UK’s National Security and Investment Act. In recent years, deals involving Chinese firms have faced heightened review, with officials citing risks linked to dual-use technologies.

For Versarien, the block represents a significant setback. The company has been seeking to restructure its operations and raise funds through asset sales, including overseas transactions. The government’s decision may affect its strategy, but officials emphasised that protecting national interests took priority.

The ruling underscores the UK’s determination to secure strategic technologies and prevent their transfer to entities that could pose risks to national security. It also signals to investors that while Britain remains open to global trade, acquisitions involving sensitive technologies will continue to face rigorous examination.