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UK competition and national security update: NSI Act divestment judicial review dismissed; CAT refuses Microsoft summary judgment; DMCCA 2024 in force 1 Jan 2025; CMA extends Boparan/ForFarmers phase 2

Published on: 28 November 2024

Published by a LexisNexis Competition expert
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NSI Act: High Court rejects judicial review of Government order requiring Russian-backed investor to sell broadband provider under the NSI Act 2021

On 20 November 2024, the High Court delivered its judgment in The King (on the application of LetterOne Core Investment, S.A.R.L. and another) v Secretary of State for Business, Energy and Industry, a judicial review of a final order issued under section 26(3) of the National Security and Investment Act 2021. That order, made by the Secretary of State for Business, Energy and Industrial Strategy, required LetterOne to divest Upp Corp Ltd (Upp) on national security grounds (the Final Order). The Court dismissed the challenge.

Background

LetterOne sits within one of Europe’s largest investment groups, whose portfolio includes the Holland & Barratt chain of health and well-being product stores. The group was founded and is ultimately owned by Russian oligarchs. In January 2021, LetterOne acquired FibreOne for £100m and later renamed it Upp. In December 2022, the then Secretary of State for Business, Energy and Industry, Grant Shapps, directed that LetterOne must sell Upp. The company was subsequently sold to Virgin Media O2 for less than the £144m that LetterOne said it had invested by that stage...

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