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


On 1 November 2026, a new merger control regime will come into force in Jersey. A summary of the current and new regimes are set out below. If are considering a merger and have any questions, please contact us at competition@jcra.je or 01534 514990. 

 

Until 31 October 2026

 

Under the 2010 Merger Order, a merger must be approved by the JCRA before completion if it meets any of the following thresholds:

 

  • Horizontal mergers: the 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, and there is no horizontal or vertical relationship.

For more information, see Guideline 8 - Mergers and Acquisitions.

 

From 1 November 2026 onwards

 

Under the 2026 Merger Order, a merger must be approved by the Authority prior to completion if based on the most recent financial year:

 

·      the aggregate turnover of the parties is £5 million or more; and

·   the individual turnover of each of the parties is £2 million or more.

 

Mergers that do not meet these turnover thresholds may still be called in by the JCRA. This means the JCRA may require the parties to submit an application where it considers that the merger may substantially lessen competition in a market in Jersey. The JCRA must exercise this power within specified time limits after becoming aware of the transaction or its implementation.

 

The 2026 Merger Order also excludes certain transactions from merger control, including some insolvency-related acquisitions, internal restructurings, financial holding company transactions, and transfers through inheritance or succession.

 

An updated guideline, reflecting the new merger control regime will be published in due course. 

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The merger review process


The key stages of the merger investigation (Phase 1) are:

  • 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.
  • Application: 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 may lead to a substantial lessening of competition in a Jersey market.
  • Decision: if the merger will not substantially lessen competition, the JCRA will approve it, with or without conditions. If competition concerns are identified that cannot be resolved at the Phase 1 investigation, the JCRA will refer the merger to a second investigation (Phase 2). 
  • Publication: the JCRA’s decision and reasoning will be published on its website.

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