M&A – consultation on changes to the National Security and Investment Act

The government has published a consultation on proposed amendments to the National Security and Investment Act 2021 (Notifiable Acquisitions) (Specification of Qualifying Entities) Regulations 2021. The regulations contain details of the 17 sensitive sectors where a mandatory filing is required under the National Security and Investment Act 2021 for certain changes of control.

The government is proposing to:

• add the water sector to the list of sensitive sectors;
• create new standalone sectors for Semiconductors and Critical Minerals and update the definitions of these sectors to include some additional activities; and
• make a number of changes to the definitions of other existing sensitive sectors to ensure that those definitions remain up-to-date.

The scope of the consultation is limited to addressing the sectors to which the mandatory notification regime applies – it does not propose any changes to the types of transaction affected. The government is however looking at other ways to reduce the burden on businesses, including in relation to mandatory notifications for certain internal reorganisations and the appointment of liquidators.

The consultation period ends on 14 October 2025.

For more information, see this post on our competition notes blog.