UK M&A regulator consults on more stringent regulations

Partly in response to the recent (failed, thus far) attempt by US pharma giant Pfizer to acquire Anglo-Swedish peer AstraZeneca, the UK’s mergers and acquisition regulator is taking steps to give itself greater powers. The takever attempt generated significant concern in terms of protecting employment and the country’s science base.

The Code Committee of the Takeover Panel has yesterday published a public consultation paper, PCP 2014/2, setting out proposed amendments to the Takeover Code so as to introduce a new framework for the regulation of statements made by the parties to an offer (ie, offerors and offeree companies) which would draw a clear distinction between statements relating to any particular course of action they commit to take, or not take, after the end of the offer period and statements relating to any particular course of action they intend to take, or not take, after the end of the offer period.

The  Code Committee invites comments on the amendments to the Code proposed in PCP 2014/2. Comments should reach the Code Committee by October 24, 2014, and should be sent in the manner set out at the beginning of the PCP.