![]() ![]() Parties may choose to voluntarily notify where they consider there is a degree of sensitivity, and to benefit from the legal certainty of an approval. Transactions within the voluntary notification regime can be called-in for review even if not notified, although certain time limits apply (see below). land, ideas, IP, algorithms) providing the ability to use or control the asset (either entirely or to a greater extent). Other trigger events subject to voluntary notification are the acquisition of material influence over a qualifying entity (regardless of the sector in which it is active) or the acquisition of a right or interest in, or in relation to, a qualifying asset (e.g. advanced robotics and quantum technologies), as well as obvious sectors such as defence, energy and transport.Īcquisitions of the above shareholdings or voting rights may be voluntarily notified if the qualifying entity is not active in one of the 17 sectors. The 17 sectors include a significant focus on technology and innovation (e.g. ![]() Mandatory notification is required for certain “trigger events” – the acquisition of more than 25 percent, more than 50 percent, or 75 percent or more of voting rights or shares in a qualifying entity active in any of 17 specified sectors, or the acquisition of voting rights enabling or preventing the passage of any class of resolution governing the affairs of such an entity. The Investment Security Unit (ISU) within the Cabinet Office operates the new regime, although the Chancellor of the Duchy of Lancaster/Secretary of State in the Cabinet Office is the ultimate decision-maker as to whether a transaction raises substantive concerns. Other types of transactions (including acquisitions of assets and IP) are subject to voluntary notification and can be called-in for review if not notified. Under the new regime, certain acquisitions of entities active in 17 “sensitive” sectors require mandatory notification and clearance before being implemented. Relevant transactions that completed on or after Novemcan also be called-in for a retrospective review. This replaced the UK’s previous national security regime under which “relevant merger situations” subject to competition review by the Competition and Markets Authority (CMA) could also be reviewed for national security concerns.Ī much greater number of transactions are being reviewed for national security concerns under the new regime given this captures a broader range of types of transactions than the previous regime, and includes a new mandatory notification requirement for certain transactions. The UK introduced a new more extensive national security regime in 2022 when the National Security and Investment Act 2021 came into force on January 4, 2022.
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