The UK is investigating Paramount's takeover of Warner Bros. Discovery

The first phase of the CMA's probe into the $110 billion deal could last for two months.

UK antitrust officials have opened a formal investigation into Paramount's pending takeover of Warner Bros. Discovery (WBD). The Competition and Markets Authority (CMA) announced on Tuesday that it will begin a merger inquiry into the $110 billion acquisition.

The first phase of the probe will get underway on June 10, with the watchdog looking into the deal's potential impact on competition. The CMA has an August 7 deadline to decide whether to advance matters to a second (and more in-depth) phase, which would put Paramount's hope of closing the deal in the third quarter of this year into significant doubt. The company beat Netflix in a bidding war for WBD over the winter.

Earlier this month, it was reported that several US states — including California and New York — are preparing a lawsuit in an attempt to block the merger. California Attorney General Rob Bonta previously pledged to investigate the deal as well.