The National Security and Investment Act 2021 came into force on 4 January 2022. The Act gives the UK Government power to scrutinise a wide range of transactions on national security grounds.

Key points to note are:

  • notification of transactions will be mandatory in some sectors. Failure to notify when required will result in the transaction being void;
  • it applies to all buyers and investors, not just those outside the UK or from certain jurisdictions;
  • the regime can be triggered on the acquisition of “material influence” in an entity, which may arise in relation to a low shareholding, potentially even below 15%;
  • it may apply to intra-group transactions; and
  • it may apply to transactions involving non-UK companies or assets.

For further information, see our briefing on the regime. We also discuss it in the context of public M&A transactions in the latest episode of our public M&A podcast series.

Caroline Rae
Caroline Rae
+44 20 7466 2916

Antonia Kirkby
Antonia Kirkby
+44 20 7466 2700

Alex Kay
Alex Kay
+44 20 7466 2447