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...

Rentokil Initial/Cannon Hygiene merger: UK CMA phase 2 clearance subject to divestment of national and multi-regional washroom waste disposal contracts; third-party appeal of Final Undertakings.

Published by a LexisNexis Competition expert

Practice notes

CASE HUB NOTE–appeal lodged by third party (Personnel Hygiene Services Limited) against CMA’s decision to accept Final Undertakings to implement remedies

ARCHIVED – this archived case hub records the position at the 25 January 2019 decision date; it is not updated. See timeline.

Case facts

Outline UK merger probe into the completed purchase by Rentokil Initial plc of Cannon Hygiene Limited. The deal features horizontal overlaps in the markets for providing washroom products and services.

Latest developments

On 25 January 2019, the CMA published its phase 2 final report and cleared the deal subject to remedies. The CMA determined the transaction created an SLC in the supply of waste disposal services at national and multi-regional levels. As remedies, the CMA decided that Rentokil Inc plc and Cannon Hygiene Limited must dispose of all contracts with customers that have premises nationwide and across multiple regions, where Cannon Hygiene Limited provided service before completion. These contracts must be sold to another company to recreate the pre-merger competitive intensity for future national contracts. That company will need to be approved by the...

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Web page updated on 21/05/2026

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