Skip to main content

Venture Capital: Takeovers

Volume 458: debated on Wednesday 28 March 2007

To ask the Secretary of State for Trade and Industry what assessment he has made of the impact of recent takeover activities of private equity organisations on trade, industry and business. (121829)

The Government have not undertaken an assessment of the impact of recent takeover activities of private equity organisations.

The regulatory control of mergers and acquisitions which qualify under the Enterprise Act 2002 is a matter for the relevant independent competition authorities which assess mergers on the grounds of their impact on competition in the market.

Separately, the Panel on Takeovers and Mergers supervises and regulates takeovers in accordance with the rules set out in the Takeover Code. The panel is an independent body which issues and administers the code. The code provides an orderly framework within which takeovers are conducted and so contribute to the integrity of the financial markets. The code is designed to ensure that shareholders are treated fairly and are not denied an opportunity to decide on the merits of a takeover. The code is not, however, concerned with the financial or commercial advantages or disadvantages of a takeover; these are matters for the company and its shareholders.