Changes to UK merger control to address national security concerns to come into force on 11 June 2018
The UK Government’s changes to the UK’s merger control thresholds, aimed at ensuring it can intervene in transactions that threaten the UK’s national security, will enter into force on 11 June 2018. The changes apply only to transactions in the military and dual use, multi-purpose computer hardware, and quantum technology sectors. For such transactions, jurisdiction will be determined by a lower target UK turnover threshold (£1 million per year, reduced from £70 million) and an amended share of supply test (25% share of supply, with no increase requirement). The Government expects only an additional 5 to 29 transactions a year would be reviewable as a result of the changes, and, on recent trends, it expects only a small minority of these (1 to 6) would warrant intervention. The changes mark the first significant reform of the thresholds of the UK’s merger control regime since its introduction some 15 years ago.
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