The Enterprise Act 2002 (Turnover Test) (Amendment) Order 2018
| Year | 2018 |
2018 No. 593
Competition
The Enterprise Act 2002 (Turnover Test) (Amendment) Order 2018
Made 14th May 2018
Laid before Parliament 14th May 2018
Coming into force in accordance with article 1(2)
The Secretary of State makes this Order in exercise of the powers conferred by sections 28(6) and 124(2) of the Enterprise Act 20021.
Citation and commencement
1.—(1) This Order may be cited as the Enterprise Act 2002 (Turnover Test) (Amendment) Order 2018.
(2) This Order comes into force immediately after the commencement of the Enterprise Act 2002 (Share of Supply Test) (Amendment) Order 20182.
Amendment of the Enterprise Act 2002
2.—(1) Section 23 of the Enterprise Act 20023is amended as follows.
(2) In subsection (1)(b), after “exceeds” insert—
“(i)
“(i) £1 million, if in the course of the enterprises ceasing to be distinct, a person or group of persons has brought a relevant enterprise (see section 23A) under the ownership or control of the person or group; or
(ii)
(ii) £70 million, in any other case.”.
Transitional provision
3. The amendments made by article 2 apply only in relation to cases where enterprises cease to be distinct after the commencement of this Order.
Richard Harrington
Parliamentary Under Secretary of State for Business and Industry
Department for Business, Energy and Industrial Strategy
14th May 2018
EXPLANATORY NOTE
(This note is not part of the Order)
This Order amends section 23 of the Enterprise Act 2002 (c. 40)(the Act) which sets out the criteria for a merger to be a “relevant merger situation”, thereby qualifying it for investigation by the Competition and Markets Authority. The Secretary of State has the power under section 42 of the Act to intervene in a “relevant merger situation” on the grounds of specified public interest considerations, where appropriate.
A “relevant merger situation” is created if: two or more enterprises have ceased to be distinct at a time or in circumstances set out in section 24 of the Act, and at least one of the following thresholds is met:
(a) the value of the turnover in the UK of the enterprise being taken over exceeds £70m (the “turnover test”); or
(b) the merger would result in the creation or enhancement of at least a 25% share of supply of goods or services in the UK, or in a substantial part of the UK (the “share of supply” test).
This Order comes into force...
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