UK CMA Probes Macquarie’s Stake in Last Mile Infrastructure

The Competition and Markets Authority (CMA) has initiated an investigation into Macquarie Asset Management’s intended acquisition of a substantial interest in Last Mile Infrastructure (Holdings) Limited. This move comes amid concerns about potential impacts on competition within the UK energy market and the regulatory functions of Ofgem.

The CMA’s probe aims to ascertain whether the transaction could diminish competition or affect Ofgem’s capacity to evaluate energy network operators effectively. The regulatory body highlighted the possibility that the acquisition might create a “relevant merger situation” under the Enterprise Act 2002, particularly involving an energy network merger. If such a situation arises, it could significantly hinder Ofgem’s ability to conduct comparative analyses of energy network enterprises.

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In a statement, the CMA elaborated, “The CMA is also considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation involving an energy network merger under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to cause substantial prejudice to the ability of Ofgem to make comparisons between energy network enterprises of the type involved in the energy network merger.”

To ensure a comprehensive review, the CMA has invited public comments on the proposed acquisition. Stakeholders and interested parties have until 2nd August 2024 to submit their views.

The outcome of this investigation could have significant implications for the structure of the UK’s energy market and the oversight capabilities of Ofgem, the regulator tasked with protecting consumer interests and ensuring fair competition. The CMA’s findings will determine whether the merger will proceed and under what conditions, if any.

Source: Energy Live News