In my previous posts reviewing 2022 I have focused on Phase 1 outcomes.
To complete the picture here are the key figures regarding the CMA’s completed Phase 2 merger investigations in 2022…………………..
The Most To Date…
In 2022 there were 14 final decisions, the highest under the CMA and well above the previous years’ average of 10.
But for some of the merging companies involved there was good news……
First, the deal survival rate (8 out of 14) was the highest since 2017, the last time that survivors outnumbered terminated deals.
Second, the number of Phase 2 remedies accepted (5) was the highest number since 2016.
As I noted in my review of Phase 1 outcomes, remedies at that phase were also at their highest since 2017, a theme I’ll return to in a forthcoming post.
And third, the five Phase 2 remedies included two of the new ‘fast-track’ Phase 2 remedies that are now potentially available to merging parties – Sika/MBCC and Carpenter/Recticel.
Quick Fix Questions…
It will be interesting to see how this new policy works in practice.
Here are two questions about it worth keeping in mind….
1.How will this new fast-track process affect the incentives of the parties to offer undertakings at Phase 1 and overall case strategy at Phase 2?
2. And how might it affect the substantive competition assessment at Phase 2 and thereby change the overall enforcement pattern at Phase 2?
If you have thoughts on this, do feel free to comment.
Click here for an interesting piece on Phase 2 fast-track cases by Sofia Platzer and colleagues