The M&A Regulations permit payment of a break fee if an acquisition offer fails because of specific events that prevent it from proceeding, such as where the board of the target recommends a higher competing offer. The break fee must not exceed 1% of the offer value and must be disclosed in the offer document and the announcement, as required under the M&A Regulations. The board of the target must provide the Capital Market Authority (CMA) with written confirmation that the fee is in the best interests of the target shareholders.