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LONDON, Jan 26 (Reuters) - Britain said it had put in place "proportionate measures" to alleviate its national security concerns about the relationship between Vodafone and Abu Dhabi-based telecoms group e&, explaining its decision to approve the strategic partnership.
The British cleared state-controlled Emirates Telecommunications' 14.6% stake in Vodafone late on Wednesday, but it said the Abu Dhabi-based company's holding posed risks in terms of government contracts and cyber security.
It said Vodafone should take a number of measures to alleviate the risk, including establishing a national security committee to oversee sensitive work that could have an impact on national security.
Deputy Prime Minister Oliver Dowden said in a new statement on Friday that the government had put in place "proportionate measures to address any potential national security concerns", under tougher rules for foreign investment under a 2021 act.
"The UK is rightly a magnet for global investment and, in this spirit, the Act is entirely country-agnostic," he said.
"Where investment might impact the UK’s national security - for example through the acquisition of certain technologies or infrastructure - we will work with investment partners to minimise any risk."
Vodafone said on Thursday it was pleased to have received clearance in its home market for its strategic relationship agreement with the company, which is also known as e&, and for e& to take a seat on its board.
E&, which has operations in 16 countries across the Middle East, Asia and Africa, is Vodafone's biggest shareholder, built up since May 2022, and the two companies agreed to deepen their relationship in May 2023.
