Merger Control
The regulatory regime requiring notification and approval of mergers and acquisitions that meet jurisdictional thresholds.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Merger control is the process by which the Competition and Markets Authority (CMA) can investigate a merger, acquisition, takeover or joint venture between businesses to assess whether it would reduce competition — for example by leading to lower quality goods or services, less choice, or higher prices.
A merger only qualifies for CMA investigation if it meets one of three tests. Under the 'turnover test', the business being taken over must have a UK annual turnover of at least £100 million. Under the 'share of supply test', the combined businesses must have at least a 25% share of a UK market (or part of it) which is expected to increase as a result of the merger, and one of the businesses must have UK turnover of at least £10 million. A 'hybrid test' also exists for businesses supplying at least 33% of a UK market with turnover over £350 million.
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Official sources
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