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Small Businesses: Takeovers

Question for Department for Business and Trade

UIN HL8322, tabled on 7 June 2023

To ask His Majesty's Government what steps they are taking to protect smaller UK firms from being taken over by foreign companies as a result of rising interest rates.

Answered on

21 June 2023

The current merger regime delivers economic openness and drives inward investment as well as offering predictability, transparency and stability. The CMA has powers to block mergers that lead to a Substantial Lessening of Competition. Ministers also have powers to intervene in mergers that raise public interest considerations, including media plurality, financial stability and public health emergencies. The National Security and Investment Act 2021 provides powers to review and intervene in transactions with national security implications. Meanwhile, the Takeover Code protects the interests of shareholders in takeovers of publicly listed companies.