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(1)The CMA may decide not to make a merger reference under section 32 as regards a case falling within section 32(a) if it believes that—
(a)the arrangements concerned are not sufficiently far advanced, or are not sufficiently likely to proceed, to justify the making of a merger reference;
(b)the prospective merger is not likely to prejudice the ability of the Authority, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises; or
(c)the prospective merger is likely to prejudice that ability, but the prejudice in question is outweighed by relevant customer benefits relating to the merger.
(2)The CMA may decide not to make a merger reference under section 32 as regards a case falling within section 32(b) if it believes that—
(a)the merger has not prejudiced and is not likely to prejudice the ability of the Authority, in carrying out its functions by virtue of this Act, to make comparisons between water enterprises; or
(b)the merger has prejudiced or is likely to prejudice that ability, but the prejudice in question is outweighed by relevant customer benefits relating to the merger.
(3)Before forming a view as to the matters in subsection (1)(b) or (c) or (2)(a) or (b), the CMA must—
(a)request the Authority to give an opinion under section 33B, and
(b)consider that opinion.
(4)The CMA may not make a merger reference under section 32 if—
(a)it is considering whether to accept an undertaking under section 33D instead of making such a reference; or
(b)it is prevented by section 74 of the Enterprise Act 2002 (effect of accepting an undertaking in lieu), in a case where that section as applied by paragraph 1 of Schedule 4ZA may have effect to prevent such a merger reference.
(5)In this section “relevant customer benefit” has the meaning given by paragraph 7 of Schedule 4ZA.]
Textual Amendments
F1Ss. 33A-33C inserted (6.4.2015 for the insertion of s. 33C, 18.12.2015 in so far as not already in force) by Water Act 2014 (c. 21), ss. 14(2), 94(3); S.I. 2015/773, art. 2(2)(a); S.I. 2015/1938, art. 2(d)
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