UK Government Proposes Significant Changes To Merger Control Regime

On 17 October 2017, the UK Government announced a set of short- and long-term proposals to amend the UK merger rules. These proposals are significant and seek to more closely scrutinise foreign investment deals that affect national security.

The first set of proposals seeks to lower the merger notification thresholds for two key sectors: the sector of design and production of military and dual use items and the advanced technology sector. For transactions in these sectors, the proposal seeks to allow the UK Secretary of State to intervene when the UK turnover of the target exceeds GBP 1 million (currently, the threshold is set at GBP 70 million). Further, the proposal would remove the current requirement for such transactions to increase the share of supply to or over 25%. According to the UK proposal, small businesses which undertake niche activities or produce highly specialised products in these sensitive sectors may hold information or items which carry