UK Takeover Code: New Pensions Obligations

    View Author May 2013

    The Panel on Takeovers & Mergers has announced the introduction of new rules in relation to defined benefit pension plans operated by target companies, where such companies are subject to a takeover bid. Bidders, targets and pension plan trustees will need to be prepared for the changes, which will apply from 20 May 2013 onwards.

    The new rules provide for, amongst other things: greater disclosure requirements in offer announcements and documentation for bidders regarding their continued funding of the target’s pension schemes; the requirement for pension scheme trustees to be provided with certain information during the course of a takeover; and the right for trustees to publish their opinion, during the course of a takeover, on the likely impact of a takeover on the target’s pension schemes.