Ex-post assessment of merger remedies: the CMA’S 2023 merger remedy evaluations

Evaluating the impact and implementation of interventions is an important aspect of public policy. Evaluations help policymakers understand what worked well and what has been less successful. They provide the basis for continuous improvement and can drive legislative reform and policy development, as well as informing future interventions. This article considers the findings of the CMA’s most recent update in its merger remedy evaluation programme, which focussed on the learnings from a set of merger case studies where the CMA required ‘carve-out’ divestiture remedies to be implemented. This recent research highlights the generally higher risk profile of carve-out remedies compared to the divestiture of stand-alone business units, which decision makers will need to take into account before concluding whether such a remedy will be effective.