Part 2: Competition Chapter 2: Mergers Section 131: Mutual agreements to extend time-limits: duty to make reference cases
This section enables the CMA and parties involved in a merger to mutually agree to extend the statutory timetable for Phase 2 investigations (known as stopping the clock) where this is likely to support timely resolution of merger investigations and to create added flexibility to the process.
	Section 39 of the Enterprise Act 2002 (time limits for investigations and reports) requires the CMA to prepare and publish its report on a merger reference within 24 weeks from the date of the reference.
	Subsection (2) amends section 39 to give the CMA the power to extend the Phase 2 timetable where it and the parties involved in a merger agree to do so. The length of an extension period has to be agreed between the CMA and parties involved in a merger. The extension comes into force when published under section 107 and continues until the end of the agreed extension period, unless the CMA and the parties involved in a merger agree to an earlier cancellation.
	Subsection (3) amends section 40 of the Enterprise Act 2002 to make clear that a mutually agreed extension does not prevent the CMA from using its existing powers to extend the Phase 2 timetable for other reasons, e.g. for special reasons (section 39, subsection (3)) or if it considers that a relevant person has failed to comply with any requirement of a formal notice under section 109 to provide information or documents (section 39, subsection (4)). The amendment to section 40(5) ensures that mutually agreed extensions are included when calculating the total length of the Phase 2 timetable in a case where there are multiple extensions.
	Subsection (4) makes amendments to section 107(2) to ensure that the CMA is required to publish any decision, agreed to by it and the parties involved in a merger, to cancel a previously agreed extension.
	While the legislation does not specify in which circumstances the CMA and the parties involved in a merger can agree an extension, this is most likely to be helpful in support of early consideration of remedies or in multi-jurisdictional mergers that are being reviewed in other countries in parallel to the UK.