The proposed merger of Lloyds TSB and HBOS has put the UK’s merger control enforcement regime firmly in the spotlight, with the Government’s willingness to put competition law on hold grabbing many of the headlines. But when the Government says it will not allow competition rules to stand in the way of the transaction, it does not mean it will be immune to regulatory scrutiny. The new secretary of state for business enterprise and regulatory reform, Peter Mandelson, may yet face a delicate balancing act when it comes to justifying his final decision.
UK merger control is governed by the Enterprise Act 2002, which introduced several major changes to the previous legislative regime. Chief among them was the conferring of decision-making power previously exercised by the Secretary of State onto independent competition authorities, the Office of Fair Trading (OFT) and the Competition Commission.
