Written question asked by Toby Perkins (Labour) on Tuesday, 2 December 2014, in the House of Commons. It was due for an answer on Thursday, 4 December 2014. It was answered by Jo Swinson (Liberal Democrat) on Tuesday, 9 December 2014 on behalf of the Department for Business, Innovation and Skills.

Takeovers

Question: To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the potential merits of a public interest test with regards to corporate takeovers; and for what reasons provision for such a test was not included in the Small Business Enterprise and Employment Bill.

Answer

The power to propose changes to the public interest regime is set out under the Enterprise Act 2002, and would involve the Secretary of State bringing forward secondary legislation. While we keep this issue under review, we are not currently planning to bring forward changes to the regime.

We do, however, welcome the consultation launched by the Takeover Panel in September 2014. This consultation proposed changes to the Takeover Code to allow companies to make more binding, long-term commitments during the bid process. These proposed changes would distinguish between a voluntary commitment made by a company about actions they commit to take, and statements about actions they intend to take. They would also enhance the Panel’s ability to monitor on-going compliance. I understand that the Takeover Panel is reviewing responses to its consultation and will be responding in the New Year.

Secondary information

Type: Written question
Reference: 216853
Session: 2014-15
Subjects: Public interest Takeovers
Link: View this Written question on www.parliament.uk

Takeovers

Secondary information

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