Rise in UK Merger Fees
01/10/2006On Friday 6 January 2006 the UK Government announced that it will increase fees charged by the Office of Fair Trading (OFT) for transactions qualifying for a merger investigation under UK merger control law. The first increase comes into effect on 6 April 2006 and the second on 6 April 2009. The fees will apply not only to transactions notified by the parties but also to qualifying mergers reviewed by the OFT on its own initiative. Small and medium-sized enterprises continue to be exempt from the fees. However, the new rules will, for the first time, require non-UK acquirers to pay a merger review fee.
The current and new fee levels are banded according to the annual turnover of the target, as shown below:
| UK turnover of target | Current Fee | Fee from April 2006 | Fee from April 2009 |
|---|---|---|---|
| £20 million or less | £5,000 | £15,000 | £30,000 |
| Between £20 million and £70 | £10,000 | £30,000 | £60,000 |
| Exceeds £70 million | £15,000 | £45,000 | £90,000 |
