Category: Competition Policy

Why Britain’s lax competition framework needs to change

The government ought to provide the Competition & Markets Authority with broader powers to prevent the acquisition of UK firms if this reduces competition at national, regional or global level. Such a change will likely spur innovation in search for other sources of earnings growth, which may lead to greater investment and productivity

Earlier in my career as a management consultant, I once questioned a CEO on his firm’s low level of organic growth.

“Much easier to buy market share!” he responded with a grin.

The recent failed acquisition of Unilever by Kraft Heinz reminded me of this quip. Kraft Heinz is a large consumer goods conglomerate with around $27bn in annualised net sales and organic growth of 1.6% year on year. In contrast, the much larger Unilever has €53bn in turnover, which fell by 1% year on year.

Continue reading “Why Britain’s lax competition framework needs to change”