Optimizing Mergers and Acquisitions Reforms
The Australian Parliament has recently approved the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024, bringing significant changes to the merger review process. Starting from January 1, 2026, these reforms will transition from a voluntary system to a mandatory notification model, aiming to make the process more structured and clear. To ensure smooth transactions and compliance with the law, parties will need to pay close attention to deadlines and correct procedures.
Under the new regime, mergers meeting specific thresholds must be reported to the ACCC for assessment. The ACCC will review transactions to see if they could harm competition in the market. If competition concerns arise, a further assessment will be conducted, potentially delaying the approval process. Parties should be aware that approval by the ACCC is necessary for transactions to proceed.
While the exact notification thresholds are yet to be finalized, it is expected that they will involve certain financial criteria for businesses involved in acquisitions. Additionally, some sectors, like supermarkets, may have specific thresholds for mergers.
These changes mark the most significant reform to Australia’s merger process in half a century and will impact deal makers and businesses with growth strategies involving acquisitions. Parties should begin considering the merger approval process early in their planning and be prepared for potential delays and increased costs. Acquisitions of smaller businesses by larger entities may face higher scrutiny under the new regime.
For more detailed information about these reforms, stay tuned for an upcoming article on our website. Should you have any questions, please do not hesitate to reach out to Robert Neely for assistance. Just a reminder, the information provided here is for general knowledge only and is not a substitute for legal advice.
