NATIONAL SECURITY MERGERS

In January 2022, the UK Government introduced new rules allowing it to investigate and block acquisitions of shares or assets that may result in national security concerns. The rules apply whether the investor is a UK or foreign acquirer.

The law is drafted very broadly to capture mergers affecting many sectors inculding life sciences, advanced materials, computing and AI, transport, nuclear, energy, communications and emergecy services.

For the first time ever, parties will be obliged to make an application to the UK Government for clearance to proceed. Failure to apply will render the deal void and could incur fines and criminal penalties. The standard merger clearance rules will also apply alongside these new rules, meaning two applications for clearance might be needed.

For help in deciding whether the rules apply and to make an application for clearance, please contact us.