Open Nav

UK to tighten takeover rules to protect national security

The UK Department for Business, Energy and Industrial Strategy (BEIS) has published a Green Paper with plans to bolster government powers to intervene in corporate mergers and takeovers involving high-tech goods and services to protect national security, and is consulting on what other powers it might need.

In the short term, the government will reduce the turnover threshold that limits its existing powers to intervene in corporate takeovers. At the moment, the Competition and Markets Authority powers only apply to takeovers where the target company has a turnover of at least £70m per year. For companies producing goods and services for military use, or “dual-use” technologies that can be used for military purposes, this is to be reduced to cover any company with a turnover in excess of £1 million. It will also reduce the takeover threshold to £1million turnover per annum for companies involved in the creation, design or support of “multi-purpose computing hardware” and quantum-based technology.

In the longer term, the government is looking at a range of options, including

  • extending existing powers to intervene in corporate takeovers, so that they would also apply to new projects, the acquisition of land near sensitive locations, and the sale of “bare assets” (e.g. equipment, intellectual property, or divisions of a business) not involving the sale of the entire company; and
  • creating a mandatory obligation on companies to notify the Competition and Markets Authority when they are targetted for takeover.
    The deadline for commenting on the changes to takeover thresholds is 14th November 2017, and for the longer term reforms is 9th January 2018.
< Go Back

Latest News

17th November 2022

LINX LON2: Your Low-Cost, Redundant and Resilient Interconnection Choice for London

By Lynsey Buckingham

LINX LON2: Your Low-Cost, Redundant and Resilient Interconnection Choice for London The LINX LON2 network platform is one of...

Read More
9th November 2022

LINX Member Portal Self-Service Features Go Live

By Lynsey Buckingham

LINX Member Portal Self-Service Features Go Live Enhancements include instant quotes, port management automation, plus Private VLAN and Closed...

Read More
9th November 2022

Nokia Selected as Technical Partner for LINX Nairobi

By Lynsey Buckingham

The London Internet Exchange (LINX) have announced that the supplier partner for its new Kenyan interconnection facility will be...

Read More
Website by Echo
Email
Call