The Competition and Markets Authority (CMA) in the UK has launched a review focused on its approach to assessing rivalry-enhancing efficiencies in mergers. This initiative is part of the CMA's commitment to fostering growth, investment, and business confidence within the UK economy.

Rivalry-enhancing efficiencies refer to improvements resulting from mergers that enhance a firm's competitiveness. These efficiencies can mitigate potential competition concerns by allowing firms to provide better-quality, more innovative, or lower-cost products and services, ultimately benefiting consumers.

The CMA's call for evidence emphasizes two main themes: the analytical approach to rivalry-enhancing efficiencies, including the types of evidence needed and the assessment of dynamic efficiencies related to innovation and investment; and the process of engaging with merging businesses, with a focus on improving the timeliness of interactions.

Joel Bamford, Executive Director of Mergers at the CMA, highlighted the importance of an effective merger control regime in protecting consumers and maintaining competitive markets in the UK. He noted that the CMA is now shifting its focus to merger efficiencies following a recent review of remedies.

The CMA is inviting feedback from stakeholders to help shape a more effective and transparent approach to assessing merger efficiencies. Responses will be considered to develop specific proposals for consultation in the spring, with the aim of implementing changes by summer 2026.