Robert Bell of Bryan Cave argues more small-market mergers are likely to be cleared under new de minimis guidelines.
On 16 June, the Competition and Markets Authority, after consulting stakeholders, published the final version of its merger de minimis guidelines, which set out the criteria it will consider when exercising its discretion under UK merger control legislation to approve mergers in small markets.
Statutory duty
Under the Enterprise Act 2002, the CMA has a statutory duty to refer a completed or anticipated relevant merger situation to an in-depth Phase 2 investigation.
It does this where it believes the merger will, or might, result in substantially less competition in any UK market or markets for goods or services.
The Enterprise Act did not set out criteria for the authority to consider when exercising its discretion not to refer to an investigation. This is left to the CMA's judgment.
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