Corporate weekly highlights—22 March 2018

Corporate weekly highlights—22 March 2018

This week’s edition of Corporate highlights includes news of draft legislation to amend UK merger thresholds for certain transactions impacting national security and a government consultation in relation to new proposals to improve the corporate governance of companies when they are in or approaching insolvency.

 

Public company takeovers

Government to amend UK merger thresholds for certain transactions impacting national security

On 15 March 2018, the UK government published a draft statutory instrument which (subject to approval by Parliament) will amend the share of supply notification threshold for the UK merger control regime (section 23 of the Enterprise Act 2002) for certain sectors impacting national security (namely the development or production of items for military or military and civilian use, quantum technology and computing hardware), so that the threshold can be met solely by the activities of the target. The government has also announced that it intends to reduce the turnover threshold to £1m for these sectors if parliament accepts the change to the share of supply threshold.  The CMA has launched a consultation on draft guidance on the proposed changes. The purpose of these changes is to enable the Secretary of State to intervene in mergers in these sectors which might give rise to national security implications.

The CMA’s consultation runs until 12 April 2018. For further information, see LNB News 16/03/2018 36.

House of Commons publishes overview of proposed Melrose acquisition by GKN

The House of Commons Library has published a debate pack providing an overview of the proposed takeover of GKN Plc by Melrose.

For further information, see LNB News 15/03/2018 141.

Corporate governance

BEIS launches consultation on insolvency and corporate governance

The Department for Business, Energy & Industrial Strategy (BEIS) has launched a consultation in relation to new proposals to improve the corporate governance of companies when they are in or approaching insolvency.

Following on from proposals to improve the corporate governance regime in relation to executive pay, strengthening the

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