ACCC says thresholds will be key to merger law success
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More news: Following the publication of the draft merger legislation, the Australian Competition and Consumer Commission (ACCC) said it is keen to ensure a new merger review system "does not add complexity" for mergers and acquisitions.
What they said: “We note having the right thresholds for proposed mergers to be reviewed by the ACCC will be key to the effectiveness of the proposed new regime and its ability to achieve the government’s policy objectives of preventing mergers that pose a risk to competition, consumers and the economy,” ACCC chair Cass-Gottlieb said.
“The new merger regime needs to strike the right balance between ensuring that potentially anti-competitive mergers are scrutinised and where necessary prevented, while minimising regulatory burden for acquisitions that do not have anti-competitive effects."
The ACCC has previously highlighted research by the Treasury’s competition taskforce that an estimated 1000 to 1500 mergers occur in Australia each year. However, only about 330 are notified to the ACCC under the existing voluntary merger regime, the regulator's media release said.
Albanese government releases draft legislation for merger reform
The news: The Albanese Government has released draft legislation for changes to merger rules that it says will make the approval system faster, stronger, simpler, more targeted and more transparent.
The context: The draft legislation comes just over three months after Treasurer Jim Chalmers announced plans to force all merger deals above a yet to be announced threshold to be notified to the Australian competition regulator, as well as a goal to stop "creeping acquisitions".
The merger law changes, due to enter into force in January 2026, will be the most extensive changes in 50 years and Treasury has said they will make it easier for the majority of mergers to be approved quickly, so the competition regulator can focus instead on a minority of mergers that raise competition concerns.
Submissions on the draft legislation are open until 13 August.
Reporter's view: Notably absent from the draft legislation are draft thresholds that will force certain deals before the Australian Competition and Consumer Commission, preventing them from being able to close without a decision from the regulator, or on review, the Australian Competition Tribunal.
Treasury has said these will be consulted on later in the year. The thresholds will be the key to knowing just how many mergers are expected to end up before the regulator.
Without them it's hard to tell how much easier it will be for the majority of deals to be approved quickly, as Treasury anticipates.
