Labour plans bid overhaul
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The Labour Party is considering a plan to keep rival bidders at bay after companies have had their takeovers referred for a monopolies investigation. This would be a substantial shift in policy from the present government's position.
A draft document on competition policy says Labour recognises the present framework for investigating takeovers causes special problems for a bidder under investigation.
It concludes that: "In a fast changing market, it may be necessary for new rules to be put into place in order to ensure that the bidding company has some protection during the interim period in order to eliminate the unfair advantage gained by other prospective bidders who may not be under investigation by the competition authorities."
The Government has normally allowed rival bidders free rein to make takeover offers during an inquiry, unless their bids also raise competition questions and merit a separate referral to the Monopolies and Mergers Commission.
There have only been occasional exceptions, such as when GEC and British Aerospace bid for VSEL. Both bids were referred to the Monopolies and Mergers Commission, even though only one reference was justified on competition grounds. Labour's proposal appears to put an automatic block on all bids if one is referred.
Labour's competition proposals, which have to be approved by the party's senior policymakers before they can appear in an election manifesto, also include a change in the burden of proof during merger investigations.
Industry View, page 22
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments