The UK government is poised to launch a major overhaul of the country's merger control system, with ministers aiming to accelerate business deals and reduce regulatory burdens. The reforms, expected to be outlined this week, represent a fundamental reset designed to make the UK a more competitive destination for investment.
Core Reforms: Streamlining the CMA's Structure
According to a report by Sky News on Sunday 18 January 2026, the Department for Business and Trade will propose significant changes to how the Competition and Markets Authority (CMA) operates. A central plank of the plan is the abolition of the CMA's independent panels, which currently handle in-depth Phase 2 merger investigations.
In their place, newly formed committees drawn from the regulator's own board would take charge. This shift is intended to streamline decision-making and concentrate authority within the CMA's leadership. Under the new structure, chief executive Sarah Cardell would be eligible to sit on at least one committee, marking a departure from the traditional arms-length model.
Narrowing Scope and Limiting Appeals
The government is also examining whether to narrow the CMA's jurisdiction over certain international deals, particularly those between overseas companies with minimal UK market presence. This follows a notable shift in the watchdog's enforcement record.
Data from law firm Simpson Thacher shows that in the previous year, the CMA cleared all 36 mergers it reviewed, blocking none for the first time since 2017. Antonio Bavasso, the firm's head of European antitrust, said the government's pro-growth agenda had an "immediate and unmistakable influence" on this trend.
Further proposals could restrict how companies challenge CMA rulings, limiting appeals to judicial review rather than allowing for a full reassessment of the decision. Ministers are also expected to merge the CMA's market studies and market investigation tools into a single process lasting up to a year.
Growth Agenda and Rising Concerns
The regulatory reset comes after the removal of former CMA chair Marcus Bokkerink, amid concerns the regulator was hindering economic growth. Business Secretary Peter Kyle is likely to promote the changes at the World Economic Forum in Davos this week, arguing they will deliver faster, clearer decisions for businesses.
Current CMA cases, such as the scrutiny of the UK veterinary sector and the proposed merger between breadmakers Hovis and Kingsmill, illustrate the regulator's ongoing work. However, the proposed concentration of power within the CMA is already raising concerns among competition lawyers. They warn it could weaken the regulator's perceived independence and expose its decisions to greater political pressure.
