UK: Government proposes new merger system rules

The UK government has proposed new measures to update the merger system in a bid to protect national security.
The UK government has proposed new measures to update the merger system in a bid to protect national security

The business and energy secretary Greg Clark announced on Tuesday, October 17, the government would be able to intervene in mergers that raise national security concerns, even when they involve smaller businesses.

This would cover export controls and companies involved in the design or manufacture of computer chips and quantum technology.

The government can currently intervene in mergers involving companies with a UK turnover of more than £70 million (US$92.3 million), but this will change to a threshold of £1 million (US$1.3 million).

The new rules will be up for consultation for four weeks from October 17.

Clark said, “It is right that every so often the government reviews its mergers regime to close loopholes where they arise and this is what these proposals do in the area of national security.

“No part of the economy is off-limits to foreign investment and the UK will continue to be a vociferous advocate for free trade.”

Clark also said the department was consulting on proposals for better scrutiny of transactions that could raise national security concerns such as espionage or sabotage.

Full Content: Yahoo

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