The UK Competition and Markets Authority (CMA) is increasingly using fast-track referrals and substantial lessening of competition (SLC) concessions to expedite merger investigations. Recent cases, including Vandemoortele/Délifrance and ABF/Hovis, demonstrate how these procedural mechanisms allow companies to shorten statutory review timelines.
The CMA's shift toward procedural efficiency via the 4Ps initiative provides a strategic roadmap for streaming and tech firms facing intense regulatory scrutiny. By utilizing SLC concessions or the statutory fast-track, companies can bypass lengthy Phase 1 deliberations when an in-depth Phase 2 review is inevitable, significantly reducing the period of deal uncertainty. This flexibility is particularly relevant for consolidating sectors like telecommunications and fibre, as seen in the nexfibre/Substantial inquiry. As the CMA exercises its broad discretion to accept these requests, the industry should watch for whether these expedited timelines become the standard for complex cross-border media mergers.
The UK Competition and Markets Authority is utilizing new fast-track mechanisms to accelerate merger reviews. By conceding competition concerns or requesting direct Phase 2 referrals, companies like Hovis and Vandemoortele have reduced review timelines by seven weeks. This procedural efficiency helps firms minimize deal uncertainty during complex regulatory investigations.
Companies utilizing the CMA's fast-track mechanisms can shave nearly two months, or seven weeks, off their statutory review deadlines.
Conceding a substantial lessening of competition (SLC) allows companies to focus exclusively on divestiture remedies during the Phase 2 review process.
Yes, under the Digital Markets, Competition and Consumers Act 2024, firms can now request Phase 2 referrals without admitting to prima facie competition concerns.
Associated British Foods, Hovis, and the Vandemoortele Group have utilized these mechanisms, while the nexfibre joint venture between Liberty Global and Telefónica is currently using the process.
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