On 22 June 2020, the UK government proposed legislation to amend the Enterprise Act 2002 which would have the effect of expanding the circumstances in which the government would have the authority to review and/or block takeovers of UK companies by foreign entities.
Under the Enterprise Act 2002, the UK government is already empowered to intervene in takeover situations which they deem to be contrary to the public interest – such as relating to the fields of national and public security, media diversity and standards, and/or financial services’ stability.
The amendments now laid before parliament, will add to the above a fourth category of businesses key to the combating of public health emergencies, such as Coronavirus.
Protecting Vulnerable ‘Critical Healthcare Capabilities’
The UK government’s thinking is that, as a result of the economic disruption caused by the current pandemic, in the short-to-medium term some UK businesses may be particularly vulnerable to hostile approaches or distressed acquisitions. Continue reading COVID-19: UK Gov Tables Enhanced Foreign Takeover Restrictions