'A fishnet that catches dolphins': Market concerns mount over merger law overhaul
VCs and corporate lawyers have warned planned changes to Australian merger laws could stifle deals in the innovation sector as a key deadline in the reform process fast approaches.
Competition lawyers and investors have called for more clarity on sweeping changes to Australian merger laws which are poised to add layers of additional scrutiny to private equity deals and venture capital investments into startups.
Just one week out from a consultation deadline on the planned changes, market participants say they are still in the dark on key aspects of the proposals, which they fear could indirectly stifle VC investment into startups and also make private equity "rollup" deals much harder to execute.
The changes are designed to force more companies to notify the Australian Competition and Consumer Commission (ACCC) of their deal plans and stop "creeping acquisitions", two issues the regulator has grown immensely frustrated with in recent years due to the rise and rise of Big Tech and a voluntary system that it feels allows too many mergers to escape review.
Rampersand VC partner Paul Naphtali told Capital Brief that as drafted, the existing proposals are a "fishnet that catches dolphins [and] hasn't had enough thought."
