UK CMA Considers Widening Exception To Avoid Phase 2 Investigations

The UK's Competition and Markets Authority (CMA) is consulting on changes to the UK merger regime proposed to reduce the burden of investigations into mergers where the parties operate in small markets.

UK merger control process

The UK operates a two-stage merger control regime. Before starting a formal merger investigation, the CMA will conduct pre-notification discussions with the parties, which typically last one to two months. Upon conclusion of these discussions, the CMA opens a formal Phase 1 merger investigation, which lasts 40 working days. If the CMA finds that the transaction may be expected to result in a substantial lessening of competition (an SLC), and the parties do not offer suitable undertakings to address the CMA's concerns (usually divestments to a third party), the CMA must refer the merger to a in-depth Phase 2 investigation, lasting a further 24 to 32 weeks. The entire process, from pre-notification to clearance at Phase 2, can last ten