OFT and CC publish merger guidelines

New competition guidelines for mergers and acquisitions have been published by the OFT and the CC.

The Office of Fair Trading (OFT) and the Competition Commission (CC) have published a new set of guidelines for assessing the impact of mergers and acquisitions on competition.

Both bodies have invited interested parties to comment on the draft document, which revises and expands existing guidance with regard to such commercial agreements.

A number of sections are included in the joint guidelines, which set out the questions that must be considered by the CC and the OFT when reviewing new mergers.

These include the criteria that should be used when assessing deals, guidance on public interest cases and information about interim measures and remedies.

The Competition Commission is the independent body tasked with carrying out inquiries into mergers, as well as the regulation of major industries.

Meanwhile, the OFT is responsible for protecting consumer interests by encouraging businesses to comply with competition and consumer law and studying markets and recommending where action should be taken.

CC chairman Peter Freeman said while the two organisations have different roles to play when assessing the competitive impact of mergers and acquisitions, there is still "considerable scope for a consistent approach".

"We are sure that parties involved in merger investigations will appreciate this clear and comprehensive explanation of how the system works, the similarities and differences between our respective roles and how we assess the competitive effects of mergers," he remarked.

The Competition Commission currently has a number of merger inquiries underway, including an assessment of proposed tie-ups between Capita and IBS and Holland & Barrett and Julian Graves.