New Lower UK Thresholds For Scrutiny Of Mergers Affecting National Security

Following the publication and consultation on a green paper earlier this year the UK Government has now published new takeover rules, adding new thresholds to the relevant provisions of the UK Enterprise Act giving the Secretary of State (SoS) additional powers to scrutinize mergers taking place after July 11, 2018. These powers are based on public interest in transactions that raise national security concerns and in which the Government would have otherwise not been able to intervene. This is part of the UK Government's wider review of national security and infrastructure investment review which will bring additional legislative changes in future. The Government's stated reasons for the new rules include technological and economic changes as well as a changing national security threat which meant that thresholds were no longer effectively safeguarding the UK's national security in all areas of the economy. In addition to giving the SoS broader grounds to intervene the