CMA launches review of its approach to merger efficiencies

The Competition and Markets Authority (CMA) has today launched a review into its approach to assessing rivalry-enhancing efficiencies in mergers, as part of its ongoing commitment to support growth, investment, and business confidence across the UK economy.

Rivalry-enhancing efficiencies are merger-driven improvements that boost a firm’s competitiveness. In some cases, these efficiencies can address potential competition concerns by enabling firms to offer better-quality, more innovative or lower-cost products and services – ultimately benefitting consumers.  

The CMA’s call for evidence seeks input on two key themes:

• The CMA’s analytical approach to rivalry-enhancing efficiencies, including the types of evidence required and how dynamic efficiencies (which relate to innovation and investment) are assessed.
• The CMA’s process for engaging with merging businesses, including whether interactions can be improved by making them more timely.

The CMA is now inviting views from stakeholders on these two themes, in keeping with its 4Ps – which focus on improving the pace, predictability, proportionality and process of the UK’s merger control regime.

Joel Bamford, Executive Director of Mergers at the CMA, said:

An effective and targeted merger control regime protects consumers and keeps UK markets competitive, driving innovation and growth. Last year we reviewed the way we look at remedies – with new guidance published in December – to reflect our 4Ps framework. We’re now turning our focus to merger efficiencies as the next step of our work to provide greater clarity on the CMA’s approach, helping to promote competition and foster a UK regulatory landscape that instils confidence among businesses and investors.

Today we’re launching a review into how the CMA assesses efficiencies and the potential benefits these can bring to UK consumers – like lower prices, more innovation or better quality products and services.

We recognise the importance of open engagement with businesses, investors, consumer groups and advisers. That is why we’ve published an initial call for evidence – inviting feedback to help shape a more effective and transparent approach to assessing merger efficiencies.

The CMA will consider responses and develop specific proposals for consultation in the spring, aiming to implement changes by summer 2026.

For more information and to respond to the call for evidence, please visit the CMA’s website.

Notes to Editors:

1. The call for evidence is open from Thursday 15 January until Thursday 26 February 2026.
2. The CMA considers rivalry-enhancing efficiencies when assessing whether a merger might harm competition. If these efficiencies are strong enough, they can offset any anti-competitive effects, potentially allowing the merger to proceed without the need for remedies.
3. Rivalry-enhancing efficiencies are merger-specific benefits that enable firms to act as stronger competitors to their rivals, for example by reducing their costs or increasing their ability and incentive to innovate.
4. All media enquiries should be directed to the CMA press office by email at press@cma.gov.uk or by phone on 020 3738 6460.