ACCC consults on merger process guidance
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The news: The Australian Competition and Consumer Commission (ACCC) has published a third batch of draft guidance linked to new merger laws — this time on the review process and timelines for its deal reviews under the impending mandatory process.
Under the new system, which companies can use voluntarily from 1 July but will be mandatory from 1 January, the ACCC plans to approve around 80% of acquisitions in 20 business days.
The first stage in the new process, referred to as Phase 1, is expected to last 30 business day. If the ACCC decides to conduct a more in-depth investigation of a merger, it will be subject to a Phase 2 review period, which would be an additional 90 business days.
Both timelines can be extended by the regulator.
The context: Treasurer Jim Chalmers announced proposals last year to force all merger deals above certain monetary thresholds — yet to be legislated — to go to the ACCC for approval. They also included a goal to stop "creeping acquisitions".
Under the new merger laws, notifiable deals won't be able to proceed without a decision from the regulator or, on review, the Australian Competition Tribunal.
Earlier this month, the ACCC published initial guidance on timing for deal reviews for the rest of the year and beyond. Last week, the regulator published draft guidance on how it plans to assess deals, including "the importance of concentration to merger analysis, and the clarification of the substantial lessening of competition test".
Feedback on draft process guidelines is due 28 April.
