The CMA’s Revised Merger Assessment Guidelines: A More Workable Route For Efficiencies?

The UK Competition and Markets Authority (CMA) has published revised Merger Assessment Guidelines (MAGs).  The main change is the introduction of a substantially expanded section on merger efficiencies, although the CMA has also taken the opportunity to make other tweaks (primarily to smooth out some of the more “pro-intervention” messaging that featured in the previous version of the MAGs published in 2020).

The revised guidance does not alter the statutory test and the same framework for assessment will apply – i.e., merging parties must still demonstrate that: (1) the claimed efficiencies enhance rivalry in the market in which a substantial lessening of competition (SLC) may arise; (2) are timely, likely and sufficient to prevent that SLC; (3) are merger-specific; and (4) benefit UK customers.  But the new guidance provides important new direction on how the CMA can be satisfied that the test is met.