UK blocks Versarien graphene sale to china-linked venture on security grounds

The UK government has prohibited the sale of Versarien’s graphene-related assets to a joint venture that included a Chinese partner, citing national security risks tied to potential dual-use technologies.

The final order, issued by senior minister Pat McFadden, prevents the transfer and use of tangible and intangible assets, including intellectual property and know-how. The decision underscores the government’s more assertive posture under the National Security and Investment Act toward transactions involving sensitive materials.

Officials said the action was necessary and proportionate, reflecting concerns that the capabilities could be applied to both civilian and military domains. UK authorities have intensified scrutiny of advanced materials, semiconductors and other frontier technologies in recent years, with several interventions and blocked deals framed around security resilience.

The company had sought to divest assets as part of a restructuring, but the ruling now places the focus on alternative options that satisfy government constraints. Analysts expect continued tight screening of transactions linked to strategic sectors, a stance that could influence valuations and deal timetables across UK tech and industrials.