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SECTION 2:

Acquisitions and UK merger control

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UK M&A

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TUPE

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UK merger control

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National Security and Investment Act 2021

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The Enterprise Act 2002

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Other restrictions on inward foreign investment

UK M&A


Another way to establish a business presence in the UK is to buy an existing UK business. This could be in the form of buying the shares in a company, buying the business and assets of a company, buying the interests in an LLP or by making a strategic investment. The process involved in acquiring or merging with a business in the UK can be extremely complex but the following are some high-level points to bear in mind:

Advisers

Structure

Funding

NDA/Exclusivity

Due diligence

Conditionality


TUPE


On the acquisition of a business, employees will automatically transfer across to a buyer under the UK’s Transfer of Undertakings (Protection of Employment) Regulations (TUPE), with their rights fully protected with the exception of certain pension rights. There are also obligations to inform and consult employees in advance of the transfer. Any plans the buyer may have to reorganise the workforce will be relevant to the process, particularly if redundancies are likely. Employment law advice should be taken early on in the process.

UK Takeover Code


UK merger control


Another key consideration for investors in the UK market is the applicability of UK merger controls.

The UK’s competition authority is the Competition and Markets Authority (CMA).

The jurisdictional tests

Obtaining a merger clearance from the CMA


National Security and Investment Act 2021


Overview


The Enterprise Act 2002


Overview


Other restrictions on inward foreign investment


Overview

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