The Secretary of State for Business, Energy and Industrial Strategy is consulting on revised statutory undertakings offered by the parties involved in the acquisition of Sepura Plc by Hytera Communications Corporation Limited.
The Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng MP, announced on 28 September 2021 that he is proposing to accept revised statutory undertakings offered by the parties involved in the acquisition of Sepura plc by Hytera Communications Corporation Limited.
On 10 April 2017, the then Secretary of State, Greg Clark MP, issued a Public Interest Intervention Notice to the Competition and Markets Authority (CMA) under Section 42 of the Enterprise Act 2002 in relation to the proposed acquisition by Hytera of the entire issued ordinary share capital of Sepura (the “Transaction”).
On 4 May 2017, the CMA reported to the Secretary of State in accordance with section 44(2) of the Act. The Secretary of State also received further representations direct from the Home Office as regards the security concerns raised by the Transaction.
In light of the report from the CMA and the advice from the Home Office, the Secretary of State considered that he had the power to refer the Transaction under section 45 of the Act to the chair of the CMA for the constitution of a group under Schedule 4 of the Enterprise and Regulatory Reform Act 2013 to carry out a more detailed assessment.
Following discussions with the Home Office, Hytera and Sepura offered undertakings. On 12 May 2017, following a public consultation, the Secretary of State accepted the undertakings in lieu of making a reference to the CMA for a more detailed assessment under paragraph 3(2) of Schedule 7 to the Act.
The undertakings were intended to provide assurance that sensitive information and technology was protected and to ensure the maintenance of UK capabilities in servicing and maintaining the TETRA Airwave Network (“Airwave”) used by emergency services in the UK. They required Sepura and Hytera to implement enhanced controls to protect sensitive information and technology from unauthorised access and to provide rights of access to premises and information so that relevant agencies including the Home Office could audit compliance with the security measures. Sepura and Hytera also undertook to continue the UK repair and maintenance service for the relevant devices as long as Airwave was operational.
The original undertakings were specific to Sepura supplying products and repair services in connection with Airwave. Airwave will be replaced by the Emergency Services Network (ESN), a long-term evolution fourth generation mobile communications network which is currently in the test phase. Sepura is supplying products and repair services to Airwave and ESN and it is therefore necessary to supersede the original undertakings to mitigate, remedy or prevent the adverse effects of the merger.
In accordance with paragraph 2 of Schedule 10 to the Act, the Secretary of State has published the draft revised undertakings for consultation here, and will consider any representations made before making a decision about whether to accept the revised undertakings.
Interested parties wishing to make representations in relation to the proposed revised undertakings should do so in writing by midday on 14 October 2021.
Responses should be sent to: publicinterestandmergers@beis.gov.uk
Disclosure, confidentiality and data protectionWe may publish non-confidential versions of the responses received on the GOV.UK website and may also refer to them in any response to the consultation, or in further publications related to the Secretary of State’s decisions. We would be grateful if you would indicate in your response whether you would be content for your response to be published and submit a non-confidential version for publication highlighting any redactions you wish to make. It would also be helpful if you would indicate whether you are content for your name and/or the name of your organisation to be published either alongside your response, or if not, as having responded to the consultation.
All responses and personal data will be processed in compliance with the Data Protection Act 2018 and the General Data Protection Regulation. More information on disclosure, confidentiality and data protection is set out in the BEIS consultation privacy notice.