Since the Labour government came into power in July 2024, merger control in the UK has been drawn into a wider debate about growth and investment.
As part of this shift, the CMA introduced its 4Ps framework — committing to improved pace, predictability, proportionality and process — with merger control singled out as a critical area for reform, reflecting its important role in shaping investment. The CMA has indicated that it would focus more on mergers with a “distinct and direct” UK impact, reducing the regulatory burden on global deals with no clear UK nexus.
In parallel, at the start of the year the CMA launched a review of its approach to merger remedies. Historically sceptical of behavioural remedies (which govern the conduct of the merged firm) and strongly in favour of structural remedies (such as divestitures), the authority is signalling more openness to behavioural solutions, particularly where they can maximise pro-competitive efficiencies and support growth by driving investment. Although slightly pre-dating both the remedies review and Bokkerink’s dismissal, the CMA’s acceptance of an investment commitment remedy in the Vodafone/Three merger was an early sign of this shift.
Opportunities for business leaders
The shifts in both Brussels and London are not just technical; they reshape the landscape for how deals are assessed. For business leaders, this creates both uncertainty and opportunity:
- In the EU, although a firm landing on merger control reform has yet to be reached, we expect it to be favourable for companies to demonstrate a range of benefits from their transaction, such as increasing innovation, resilience and competitiveness for the EU. Being able to evidence these dynamic effects persuasively will be critical but complex. It will also require adapting existing tools.
- In the UK, the CMA’s reforms point to a greater emphasis on growth, more openness to behavioural solutions and faster timelines. They give businesses more room to shape the narrative around investment, remedies and the UK’s role in global deals. However, we expect the CMA to continue to be rigorous and, therefore, the quality of arguments and evidence to be key.
The shifts in both Brussels and London are not just technical; they reshape the landscape for how deals are assessed.
How BRG can help
BRG’s economists are actively involved in these developments. With offices in Brussels, Paris, London, Rome, Milan and beyond, BRG offers pan-European expertise grounded in regulatory insight and economic rigour.