Reforms to the UK merger regime entered into force in June 2018.
The reforms are designed to address concerns regarding the security of critical national infrastructure. In particular, the Government has amended the threshold tests for businesses in the military, dual-use, and quantum computing sectors.
Pursuant to the Enterprise Act 2002 (Turnover Test) (Amendment) Order 2018, SI 2018/593, the turnover threshold has been reduced from £70 million to £1 million.
Pursuant to the Enterprise Act 2002 (Share of Supply Test) (Amendment) Order 2018, SI 2018/578, the requirement for government intervention that there be an increase in the parties’ combined share of supply of relevant goods or services due to a merger or acquisition has been removed; it is enough that 25% share of supply is held, without an increase being necessary.
Further longer-term reforms are expected to be announced in the near future.
Please contact Tim if you have any questions regarding the reforms, or merger control generally.