On 21 April, the Competition and Markets Authority (CMA) said that it would refer the merger for an in-depth investigation, called a phase 2 investigation, unless Cygnet offered acceptable undertakings to address competition concerns.
Cygnet has not offered any undertakings and the CMA will therefore now refer the merger.
The CMA’s initial investigation identified competition concerns in relation to the provision of rehabilitation services to patients suffering from long-term mental health issues in 8 areas, and patients suffering from personality disorder in 4 areas.
A decision on the merger will be made by a group of independent panel members supported by a team of CMA staff. The deadline for the final report will be 17 October 2017.