The Competition and Markets Authority has launched a review of the measures it hands out to settle takeovers and has published a Mergers Charter setting out how it will conduct investigations.
The body says its call for evidence on remedies will close on 12 May and will also see it hold a series of roundtable sessions.
Feedback will be used to develop specific proposals to be published for consultation in the autumn.
The CMA review will cover three key areas:
- How the CMA approaches remedies, including the circumstances in which a behavioural remedy may be appropriate
- How remedies can be used to preserve any pro-competitive effects of a merger and other customer benefits
- How the process of assessing remedies can be made as quick and efficient as possible
The move comes after former Amazon UK head Doug Gurr was appointed as interim chair of the competitions body in January, unexpectedly replacing Marcus Bokkerink, as the government pushes ahead with its drive to cut red tape.
Sarah Cardell (pictured) remains at the Competition and Markets Authority as chief executive.
Last month, she said the body would take action to improve the way it looked at takeovers that would focus on — pace, predictability, proportionality and process.
Today, the body publishes its Mergers Charter, which “sets out clear principles” on how the body “will engage with businesses and their advisors during merger reviews, and what we expect from businesses in return” under these four principles.
- Conduct reviews “as efficiently and expeditiously as possible” and will “seek to reach milestones ahead of the statutory time limits where possible”
- Streamline investigations “to focus rapidly on important emerging areas of potential concern and stand down other lines of inquiry as quickly as possible where no clear evidence of concern arises”
- Attend meetings with appropriate business personnel at the requested time
- Provide information and evidence in a timely and complete manner, meeting requested deadlines
- Be as clear as possible about our jurisdictional remit and make use of mechanisms — such as guidance, business and advisor outreach sessions, and clear explanations in decisions — that can help give businesses greater certainty
- Provide regular updates to merging businesses on the status of the review and the issues being investigated
- Engage in “a full and frank manner”
- Share relevant information directly with the regulator, “rather than our learning of it through other channels”
- Target which deals to review and focus on areas of concern
- Minimise business burdens “while conducting the review necessary to reach a robust outcome as quickly as possible”
- Submit “tightly-scoped submissions” which focus on the main issues of potential concern identified by the regulator
- Ensure that investigations are clearly understood and accessible – including timelines, upcoming milestones and issues that remain a potential concern
- Ensure their advisors facilitate a constructive and timely engagement with the regulator at all times
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