The Competition and Markets Authority (“CMA”) has published its latest Mergers Charter.

The Mergers Charter repeats the new ‘4P Framework’ (referred to previously here) that will be at the heart of the CMA’s approach to mergers:

1. Pace

The CMA commits itself to conducting its reviews “as efficiently and expeditiously as possible”, dedicating appropriate time and resources, streamlining investigations, and conducting “targeted, efficient and proportionate” information gathering. In turn, businesses are expected to “make every effort to attend meetings” and provide information which is complete and delivered within requested deadlines.

2. Predictability

The CMA states that it will be as clear as possible about its jurisdictional remit and use various mechanisms to provide greater certainty for businesses.  This includes more use of guidance or outreach sessions, providing regular updates to businesses on the state of any review, and encouraging full and frank engagement with its staff.

3. Proportionality

The Charter states that the CMA’s commitment to acting proportionately in the conduct of its mergers reviews extends to matters such as the decisions on which deals to call in for review, the prioritisation of potential concerns for investigations, the design of remedies, and the minimisation of burdens on businesses while a review is being conducted. For their part, businesses engaging with the CMA are expected to respond to information requests with clear, complete and accurate information, and to draft “tightly scoped submissions which are focussed on the main issues of potential concern identified by the CMA”.

4. Process

Finally, in its direct engagement with businesses, the CMA commits itself to engage “proactively with an open mind, without prejudice or bias as to the outcome of any investigation”, ensuring that businesses have a clear understanding of the progress and process of an investigation.

Commenting on the publication of the new Charter, Joel Bamford, Executive Director for Mergers at the CMA, said, “the Mergers Charter is a statement of clear intent that the CMA is fully committed to engaging directly with businesses – whether they be merging businesses, their customers, suppliers or competitors – on our processes and the outcomes these generate. We will engage in good faith, constructively, with open minds – and we encourage businesses and advisors to do the same”.

To read the Mergers Charter in full, click here.