The UK government is responding to increasing sensitivity
from Russian and Chinese investments into the country in
several ways. One of these is through its competition policy:
the Competition and Markets Authority (CMA) and the Department
for Business, Energy and Industrial Strategy (BEIS) are going
proposals to amend the jurisdictional thresholds that were
initially established by the Enterprise Act 2002.
The updated rules would strengthen the government's powers
to scrutinise takeovers that may raise national security
concerns in some specific areas of the economy.
In a March 15 consultation paper, the CMA suggested reducing
the turnover threshold at which it reviews mergers from
£70 million ($99 million approximately) to £1
million - the turnover test - and widening the stipulations of
a share of supply test. The latter would provide a hook for the
government to intervene when an acquisition leads to a company
holding a 25%...