Ministers to change UK merger rules in bid to speed up deals
Whitehall is preparing a fundamental reset of the UK’s merger control regime, as ministers seek to accelerate deal-making and strip back some red tape for businesses.
The Department for Business and Trade is expected to outline plans this week that would significantly change how the Competition and Markets Authority (CMA) reviews takeovers and sector-wide competition issues, Sky News reported on Sunday.
Officials claim the reforms will cut delays and provide greater certainty for companies pursuing mergers in the UK.
Central to the proposals, is the removal of the CMA’s independent panels system, which currently oversees complex phase 2 merger investigations.
Instead, responsibility would move to newly formed committees, drawn from the regulator’s own board.
This is set to streamline the process and concentrate decision-making within the authority itself.
Sky News reported that the new structure would give the CMA’s leadership far greater influence over high-profile cases.
Chief executive Sarah Cardell would be eligible to sit on at least one of the committees, which marks a clear departure from the arms-length model that has governed merger probes for years.
The government is also examining whether to narrow the CMA’s reach over certain international transactions, especially deals between overseas companies with limited UK exposure.
Proposals under discussion could also restrict companies’ ability to challenge merger rulings, limiting appeals to judicial review rather than full reassessments of decisions.
Pro-growth agenda drives reset
This shake-up comes against the backdrop of a marked change in the CMA’s enforcement record.
Last year, the watchdog cleared all 36 mergers it reviewed, blocking none for the first time since 2017, according to data from law firm Simpson Thacher.
The shift followed the removal of former chair Marcus Bokkerink, amid concerns the regulator was acting as a brake on economic growth.
Antonio Bavasso, the firm’s head of European antitrust, said the government’s pro-growth push had an “immediate and unmistakable influence” on merger enforcement.
This is due to fewer interventions, as well as a retreat from policing global deals where UK competition risks were marginal.
Ministers are also expected to streamline the CMA’s market-wide investigations by merging its market studies and market investigation tools into a single process lasting up to a year.
Current cases include scrutiny of the UK veterinary sector, and the proposed mega merger between breadmakers Hovis and Kingsmill.
Business secretary Peter Kyle is likely to present the changes as part of the government’s broader growth agenda during this week’s World Economic Forum in Davos, arguing that faster, clearer decisions will make the UK a more attractive destination for investment.
But the reforms are already raising concerns among competition lawyers, who warn that concentrating power within the CMA could weaken perceived independence and expose decisions to political pressure.