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Any takeover is a matter for the independent competition authorities (Office of Fair Trading (OFT). The Enterprise Act 2002 provides the legislative base. Ministers are now excluded from merger decisions which brings the UK's merger regime into line with best practice in other countries, with economic considerations being paramount. This change makes decision making more predictable for business as firms would no longer need to factor in the possibility of decisions being influenced by political considerations.
Government policy is that the vast majority of cases should be taken on the basis of a pure competition test. Promoting competition as a means to driving productivity is a better way of securing jobs and growth than protectionism. For energy mergers, Ofgem (the gas and electricity markets regulator) and OFT have a concordat which requires Ofgem to advise OFT if any merger in the gas or electricity sectors raises competition concerns. The European Commission takes jurisdiction if the merger has a 'Community Dimension' which is defined by turnover. The key test for competition authorities is whether a merger will lead to a lessening in competition for consumers.
