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ARTICLE · 08 DECEMBER 2020

Merger Control: CMA's Ability To Reject Remedy Proposals

Gowling WLG
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On 21 April 2020 the Competition Appeal Tribunal (CAT) dismissed a challenge by Ecolab, Inc of the Competition and Markets Authority's (CMA's) decision in its final report on Ecolab's completed...

United KingdomAntitrust/Competition Law
Samuel Beighton
Samuel Beighton
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On 21 April 2020 the Competition Appeal Tribunal (CAT) dismissed a challenge by Ecolab, Inc of the Competition and Markets Authority's (CMA's) decision in its final report on Ecolab's completed acquisition of The Holchem Group Limited (Holchem),1 including in relation to the CMA's required divestiture remedy.2

The CAT's judgment confirms the CMA's ability to reject proposed remedies where it does not have a high degree of confidence that they will effectively address identified competitive concerns.

In addition, the required divestiture remedy highlights the potential risks that purchasers face if they complete transactions without obtaining UK merger clearance and these transactions are subsequently investigated by the CMA.

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