The Competition and Markets Authority (CMA) has cleared the anticipated merger of Bako North Western and Bako Scotland.

It said today that it had decided not to refer the merger to a Phase 2 investigation under the provisions of the Enterprise Act 2002.

The deal was referred to the CMA by Bako North Western in May on a “fail-safe basis”. 

Phase 1 of the merger inquiry was launched in June, and a decision on whether it would progress to Phase 2 was initially expected on 4 August.

The merger comes 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 took place to determine if the latest buy-up, could result 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.”

British Baker had approached Bako North Western and is awaiting comment.