The United Kingdom strengthens its control over mergers in critical sectors due to national security considerations
On 11 June 2018, the United Kingdom brought two amendments to the Enterprise Act 2002 into force. These amendments change the conditions for the application of the UK’s reviews of inward investment to manage national security concerns. The changes lower the turnover test threshold for mergers and acquisitions from GBP 70 million to GBP 1 million in three sectors: • the development or production of items for military or military and civilian use (‘dual use’); • the design and maintenance of aspects of computing hardware; and • the development and production of quantum technology. The share of supply test – an alternative criterion that could trigger a review – was likewise amended to also cover situations where the acquisition target already supplies 25% of the UK market in its sector; previously, only situations where the acquisition created a 25% supply position or led to an increase of the market share in the sector in the UK was covered.
Type: Entry and establishment (Approval and admission)
Industry: Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Other manufacturing), Services (Computer programming, consultancy and related activities)
- Government Website, Government upgrades national security investment powers, Jul 24, 2018
- Government Website, The Enterprise Act 2002 (Share of Supply Test) (Amendment) Order 2018, May 14, 2018
- Government Website, The Enterprise Act 2002 (Turnover Test) (Amendment) Order 2018, May 14, 2018