Britain's Competition and Markets Authority is rethinking how it weighs potential efficiencies in merger reviews. The competition watchdog announced a formal review Thursday, seeking evidence on whether deal-driven improvements in quality, innovation, or pricing can offset rivalry concerns. This move aims to clarify when pro-competitive benefits justify allowing mergers to proceed.

Joel Bamford, the CMA's mergers executive director, said the review seeks to provide clearer guidance and foster business confidence. The initiative follows the regulator's December remedies review and aligns with its '4Ps' framework for faster, more predictable decisions. Firms want certainty on how efficiency arguments can address competition worries.

The authority is asking for input on evidence standards and how to better engage with merging companies. A call for evidence runs until February 26, 2026, with draft proposals expected this spring and final rules by summer. Historically, UK regulators have been skeptical of efficiency claims, so clearer standards could smooth major deals.