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Detail of outcome
June 2018 - Short term powers
The secondary legislation to enable the short term powers has now come into force. The government has published guidance on changes to the turnover and share of supply tests for mergers.
Part 2 of the consultation on the longer-term reforms closed on 9 January 2018. We are now considering the responses received and will lay out plans for long-term reform in due course.
Detail of feedback received
The first part of this consultation on short term reforms closed on 14 November. We received 27 formal responses from interested parties, including:
- legal and advisory firms
- trade associations
- industry groups
- individual businesses
- government bodies
- research bodies
We also received feedback on the proposals through meetings with an additional 7 organisations during the consultation.
Stakeholders demonstrated some support for the principle of and rationale for the intended action. Most also provided some specific views about the detail of the proposals, particularly the sectors to which the amended thresholds would apply.
This green paper is the result of the government’s review of the Enterprise Act 2002 and its powers in relation to foreign investment and national security. It sets out the approach the government proposes to take in both the short and long term. We will use your responses to the green paper to develop these proposals further.
The consultation is split into 2 parts.
In the short term, we propose to amend the turnover threshold and share of supply tests within the Enterprise Act 2002. This is to allow government to examine and potentially intervene in mergers that currently fall outside the thresholds in 2 areas:
- the dual use and military use sector
- parts of the advanced technology sector
Part 1 of the consultation lasts 4 weeks, closing on 14 November 2017.
The second part of the green paper seeks views about potential long-term reforms that government should take to its approach to ensuring that investments and takeovers cannot raise national security concerns.
Part 2 of the consultation lasts 12 weeks, closing on 9 January 2018.