All supermarket deals to face ACCC scrutiny as it also flags pathology and liquor focus
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More news: Any deal in the supermarket industry will be subject to ACCC scrutiny under today's new merger law proposals, regardless of its monetary value. The government has also left the door open for further industries to be designated for automatic deal notification in the future, pending further evidence from the ACCC.
What they said: "There is a clear case already in supermarkets," Treasurer Jim Chalmers told journalists at a press conference today.
"We've already had the work done. Gina's team has already done the work to determine that there's already a clear case for supermarkets, and if there are other parts of the economy that warrant it, there will be a robust process where the ACCC will provide advice to me, and we can designate other parts of the economy as well.
"But supermarkets and the steps that we're taking when it comes to private businesses, we think that's appropriate for now, but there will be a process that allows us to designate other sectors when the circumstances warrant it."
ACCC chair Gina Cass-Gottlieb said: "The sectors that we have commenced an engagement with Treasury about and have indicated as ones that we would want to take further steps towards such a process include radiation oncology, pathology and liquor retailing."
Merger reform bill to be introduced to parliament
The news: Federal Treasurer Jim Chalmers will introduce a bill into parliament on Thursday outlining the biggest merger reforms "in almost 50 years".
The context: Australia is one of three OECD countries that does not require compulsory notification of mergers, and merging businesses do not currently have to notify the competition regulator or wait for its review before completing a merger.
The new legislation is designed to make the current merger system "faster, stronger, simpler, more targeted and more transparent", Chalmers said.
However, only mergers that met particular monetary thresholds would need to notify the Australian Competition and Consumer Commission (ACCC) and be approved before proceeding.
These monetary thresholds include:
- If the Australian turnover of the combined businesses is above $200 million, and either the business or assets being acquired has Australian turnover above $50 million or global transaction value above $250 million;
- Very large business with Australian turnover more than $500 million buying a smaller business or assets with Australian turnover above $10 million; and
- All mergers by businesses with combined Australian turnover of more than $200 million where the cumulative Australian turnover from acquisitions in the same or similar goods or services over a three-year period is at least $50 million will be captured, or $10 million if a very large business is involved.
The reforms include:
- Approving mergers within 30 working days where the ACCC is satisfied they pose no threat to competition;
- Introducing a mandatory notification system and empowering the ACCC as the decision maker on all mergers;
- Reducing three streams to a streamlined path to approval that removes duplication and standardises notification requirements for mergers;
- Targeting mergers that "create, strengthen or entrench substantial market power", and fast-tracking others; and
- Giving the ACCC better visibility of merger activity.
The new merger reforms, announced in April, will take effect from 1 January 2026 and apply voluntarily from 1 July 2025.
Last year, over 1,400 mergers were recorded in Australia at a value of around $300 billion. The ACCC looked at an average of 330 mergers a year over the past decade — around a quarter of the total.
The source: Treasury media release
