Tech giants at the centre of government’s bid to rein in mega-takeovers

The UK watchdog has already forced one high-profile start-up to return its landing pad. Now it wants further changes to rules for start-ups – and the government seems inclined to oblige.

The Competition and Markets Authority proposed on 21 June a new suite of measures designed to limit the takeovers that a handful of high-profile companies can exercise their hands on.

The watchdog wants to limit the scale of takeovers where certain kinds of investors are dominant. These include anything of significant value where the investor is responsible for less than 3% of shares and more than 10% of assets in a listed company.

Crucially, the proposals also seek to impose criteria on the investors themselves. To avoid making the CMA’s job of policing the rules too easy, the proposals clarify that organisations must not be concentrated to a degree which would create conflicts of interest if they invest in the wrong company.

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