51�Թ�

The CMA enforces the existing law, which applies across different sectors to protect consumers, in this case students.

The CMA said ideas such as sharing back-office functions, or discussing possible mergers with other universities, were unlikely to raise competition law concerns.

Juliette Enser, executive director of competition enforcement at the CMA, said: "We know universities are interested in collaborating on courses they offer and we are working to understand how this fits with overall plans for higher education reform."

The combined companies would make become a significant force in the car insurance sector, which has caught the attention of the CMA.

But the CMA said the creation of a single firm "may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services".