Assessments and requirements when merging businesses

When you decide to merge businesses, through takeover, acquisition or a joint venture, you may be reducing competition in your field. If your merger will substantially lessen competition it may be prohibited or you may have conditions imposed upon you.

The Competition and Markets Authority (CMA) is responsible for investigating competition issues raised by mergers. This includes assessing the impact of a transaction on competition to protect consumers.  

Competition assessment

The CMA has the jurisdiction to examine a merger (which includes acquisitions and joint ventures) where:

• two or more enterprises cease to be distinct
• and
  • either the UK turnover of the acquired enterprise exceeds £70 million
  • or the two enterprises supply or acquire at least 25 per cent of the same goods or services supplied in the UK (or a substantial part of it) and the merger increases that share of supply

National security investigations

Under the National Security and Investment Act (NSI Act), the UK government can investigate and, if necessary, intervene in mergers that could potentially harm the UK's national security. See notifying authorities of a merger.

A quick guide to UK merger assessment.