UK merger control

If a transaction falls within the scope of the UK merger rules under the Enterprise Act 2002, as amended by the Enterprise and Regulatory Reform Act 2013 (ERRA 2013) and the Digital Markets, Competition and Consumers Act 2024 (DMCCA), the parties may choose to notify the Competition and Markets Authority (CMA) or the CMA may decide to investigate itself. If, after an investigation, the CMA has competition concerns, it can prohibit the transaction (or unwind it if it is a completed transaction), accept remedies from the parties or (at phase 2) impose remedies that address those concerns.

When will a transaction fall within the UK merger rules

The DMCCA made several changes to the merger control thresholds. There are now three alternative thresholds—the turnover test, the share of supply test and a hybrid test—one of which must be met for a transaction to fall within the scope of the UK merger control rules.

A transaction will fall within the UK merger rules if it is a 'relevant merger situation', meaning:

  1. two or more enterprises (or businesses) must 'cease to be distinct', and

  2. the target's

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