Jurisdiction(s):
United Kingdom

Key definition

SLC definition

What does SLC mean? SLC (substantial lessening of competition) describes, in merger control, a material reduction in competitive rivalry that risks higher prices, lower quality or choice, reduced innovation or weaker service. It is the statutory test applied by the UK Competition and Markets Authority (CMA) under the Enterprise Act 2002 and by Ireland’s Competition and Consumer Protection Commission (CCPC) under the Competition Act 2002 (as amended by the 2014 Act). Usage is consistent across England & Wales, Scotland and Northern Ireland (UK-wide CMA jurisdiction) and broadly aligned in Ireland. In practice, the SLC test is forward‑looking and counterfactual: authorities define the relevant product and...

Archived UK CMA Phase 2 (2017): Cygnet/Cambian adult services merger cleared subject to East Midlands male long-term mental health rehabilitation divestment

Published by a LexisNexis Competition expert

Practice notes

CASE HUB ARCHIVED

This archived case hub captures the position as at the decision date of 16 October 2017 and is no longer being maintained. See further, timeline.

Case facts

Outline: UK merger inquiry into the completed purchase by Cygnet Health Care Limited of Cambian Group plc’s adult services arm.

Latest developments

On 16 October 2017, the CMA published its final report and approved the deal subject to remedies. The CMA concluded the merger resulted in an SLC regarding the supply of male mental health rehabilitation services in the East Midlands. The merger was cleared in every other originally assessed area, including the West Midlands, where the provisional findings had flagged potential concerns about services for female patients. As a remedy, the parties must sell one of their hospitals in the East Midlands to a CMA-approved buyer.

Parties

Cygnet Health Care Ltd (Cygnet) is owned by Universal Health Services, Inc, a US-based company operating more than 240 acute care hospitals and behavioural health facilities across the US, Puerto Rico, the US Virgin Islands and the UK...

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Web page updated on 21/05/2026

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