The anticipated acquisition by Bako North Western of Bako Northern & Scotland is under investigation by the Competition and Markets Authority (CMA).
The investigation was initiated at the request of Bako North Western on a ’fail-safe basis’.
Phase one of the merger inquiry was launched earlier this month, and a decision on whether it will progress to phase two is expected on 4 August.
Bako North Western announced the news of the merger in May this year, following the acquisition of Bako London & South East in July 2013.
It means the only arms in the Bako Group not run by Bako North West, in Preston, are the Bako Wales and Bako Western organisations.
The investigation is taking place to determine if the latest buy-up, results in “a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
When the deal was revealed, the company said in a statement: “The transaction will bring together two highly complementary organisations and will build on the strengths of both parties to continue to deliver excellent products and service to customers.
“As a combined entity, service across local, regional and national customers will be enhanced and opportunities for staff, suppliers and partners will increase accordingly.”