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.
A transaction will fall within the UK merger rules if it is a 'relevant merger situation', meaning:
two or more enterprises (or businesses) must 'cease to be distinct', and
the target's UK turnover exceeds £70m or the combined share of supply exceeds 25% (with an overlap between the parties), and
the merger is within the time limit for review; namely that, in the event of a completed acquisition, the must make a reference decision within four months
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