Run the tests
Buying a competitor business in the UK: the CMA tests, step by step
Updated
Four questions decide whether the CMA can look at your purchase of a competitor. Answer them from the two businesses' own accounts.
Send my brief Sector, area, price range and timing. Joseph Ellul reads it himself and replies directly. Free, no obligation.
The four questions
1. Is each party's UK turnover £10 million or less?
If so, the deal sits in the small merger safe harbour and the CMA cannot review it.
Source: UK Competitor Acquisition Rules
2. Does the competitor turn over more than £100 million in the UK?
If so, the turnover test is met and the CMA can review the merger.
Source: Enterprise Act 2002, section 23
3. Would you supply 25% or more of something together?
The share of supply test, measured on whatever goods or services the CMA thinks fits.
4. Does one party have a 33% share and £350 million of UK turnover?
The hybrid test added in 2024 reaches a large firm buying a small one.
Source: UK Competitor Acquisition Rules
If the CMA investigates
The fee
From £40,000 for a target turning over £20 million or less in the UK to £160,000 above £120 million.
Source: UK Competitor Acquisition Rules