Between now and 1 July, merging companies and their lawyers have a key tactical decision to make: stick with an informal merger review system with a use-by date of 31 December, or volunteer as a guinea pig for the most significant competition law change since the introduction of Australia’s Trade Practices Act in 1974.
As Johnson Winter Slattery partner Sar Katdare told Capital Brief, “the first person lodging under the new regime will be very careful”.
Treasurer Jim Chalmers announced proposals last year to force all merger deals above certain monetary thresholds — yet to be legislated — to go to the Australian competition regulator 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 Australian Competition & Consumer Commission (ACCC) or, on review, the Australian Competition Tribunal.
