Mergers and Acquisitions

Mergers and acquisitions are used by businesses to restructure in order to compete and prosper. However, some may reduce competition and harm consumers. To prevent this, we review certain mergers to safeguard against potential negative impacts.

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The Authority operates a mandatory clearance regime for specific mergers and acquisitions. Approval is granted only if we are satisfied that the merger is unlikely to substantially lessen competition in the market.

To make this assessment, we compare the likely competition in the market if the merger proceeds with the likely competition if it does not proceed.

A substantial lessening of competition is typically the same as an increase in market power. This allows businesses to raise prices or lower the quality of goods and services beyond what would occur in a competitive market.

The impact of mergers and acquisitions

Mergers and acquisitions can deliver significant benefits for businesses, such as:

Introducing new management skills and investment
Achieving efficiencies through economies of scope and scale
Driving innovation, value for money, choice and quality for consumers

However, concerns may arise if a merger reduces competition in the market. Reduced competition may lead to:

Higher prices
Lower product or service quality
Less choice and innovation

These risks make it essential to assess mergers and acquisitions to understand their potential impact on market competitiveness.

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Jersey's merger control regime

Jersey’s Competition Law establishes a mandatory merger control regime.

Under the Competition (Mergers and Acquisitions) (Jersey) Order 2010, a merger cannot proceed without prior approval from the Authority if it meets certain thresholds:

Horizontal mergers: the merging parties are active in the same market, and the merger would result in, or increase, a share of supply or purchase of 25% or more.
Vertical mergers: one party has a share of supply or purchase of 25% or more, and the other party operates upstream or downstream of that supply.
Conglomerate mergers: one party has a share of supply or purchase of 40% or more, with no horizontal or vertical relationship.

For more information on the notification thresholds, refer to Guideline 8 - Mergers and Acquisitions.

If you have questions, contact us at info@jcra.je.

Please note, we cannot advise whether a transaction needs to be notified. If in doubt, consider independent legal advice.

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The merger review process

Our Guideline 8 - Mergers and Acquisitions explains the merger review process. We aim to complete the process within 25 days of notification, which includes a 10-day public consultation.

Key stages include:

Pre-notification: engage with us early. Early discussions can make the process smoother.
Draft submission: submit a draft Merger Application Form. We will review it to ensure it includes sufficient information for assessment.
Notification: once the application form has been accepted as final and the application fee is paid, a notice will be published on our website. We aim to complete the merger review process within 25 days of notification which includes a 10-day public consultation.
Assessment: we assess whether the merger is likely to substantially lessen competition in a Jersey market.
Decision: if the merger will not substantially reduce competition, the Authority will approve it. If concerns arise during the assessment that mean the merger may be refused or approved with conditions, the Authority will refer the transaction for a detailed review.
Publication: the Authority’s decision and reasoning will be published on our website.

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