The government has implemented its plans to amend the merger control thresholds in order to address national security concerns, initially set out in a Green Paper in October.
In May the government published the Enterprise Act 2002 (Share of Supply Test) (Amendment) Order 2018 and the Enterprise Act 2002 (Turnover Test) (Amendment) Order 2018, which make amendments to the Enterprise Act 2002.
These amendments came into force on 11 June 2018.
There are two key changes, which apply only to the dual and military, quantum technology, and computer hardware sectors.
Firstly, the turnover threshold to be met for the creation of a relevant merger situation has been lowered from £70 million to £1 million.
Secondly, the requirement in the share of supply test that there is an increase in the share of supply to 25% or over has been removed, so that a relevant merger situation may be created where a business has an existing share of supply of 25%, which is not increased by the merger.
The Department for Business, Energy & Industrial Strategy has published a guidance document, available here.
If you have any questions relating to the changes, or merger control more generally, please contact Tim Cowen.