The UK merger regime is voluntary, which means that if a transaction falls within the scope of the UK merger rules, there is no requirement to seek prior clearance—it is up to the merging parties to decide whether or not to notify the CMA. However, if a transaction is not notified, there is a risk that the Competition and Markets Authority (CMA) may still investigate and may, ultimately, order the disposal of the acquired business (or other businesses or assets).
Once started, a merger investigation follows a set process with strict timings:
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all investigations are subject to a phase 1 investigation—the CMA has 40 working days to issue its decision on whether a merger raises competition concerns and meets the test for referral for a phase 2 investigation, and
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where the CMA has concerns that it will restrict competition and the parties do not offer suitable remedies (called undertakings in lieu) that are accepted by the CMA, an in-depth phase 2 investigation will be carried out by the CMA (albeit with an independent Inquiry Group making decisions
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Scope definition
What does Scope mean?
The scope of works is a term which may be used generally in construction projects to describe the works that the contractor is expected to carry out. More specifically, ‘Scope’ is a defined term used in the NEC4 suite of contracts to specify and describe the work which the contractor is to undertake, together with any constraints on how it is to carry out such work. In the NEC3 suite of contracts, the term ‘works information’ wass used instead of Scope.
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