COMPETITION AUTHORITY

When assessing a merger, the Competition Authority (CA) applies standard competition tests regardless of whether a merger happens between non-competing businesses that are vertically integrated (vertical merger),  businesses operating in the same market as actual competitors (horizontal merger) or between businesses with no functional link or economic relationship.

For example, a tyre manufacturer acquiring an IT company (conglomerate merger). These competition tests determine whether the merger or acquisition would be likely to prevent or lessen competition and whether the merger would result in the company or enterprise possessing a larger share of the market as compared to its competitors (what economists refer to as market dominance).