Historic merger reforms pass Parliament
The laws will give the ACCC more power to block anti-competitive deals and impose mandatory notification requirements on companies.
Companies will be forced to notify the ACCC before making large acquisitions and the regulator will be given more power to block deals that lessen competition starting in 2026 after the government’s landmark merger laws passed last week.
The laws passed as part of a marathon sitting session on the final day of parliament on Thursday which also saw the passing of a controversial social media ban for children, RBA reforms and new anti-money laundering obligations for lawyers and accountants.
The ACCC said the merger reforms, contained under the Treasury Laws Amendment (Mergers and Acquisitions Reform) Act 2024, were the biggest overhaul to Australia’s mergers law in 50 years.
“We recognise that this will be a very significant change for the business community and indeed the ACCC,” regulator chair Gina Cass-Gottlieb said.
“We have consistently outlined why the changes are necessary to achieve effective merger control in Australia and ensure there is strong competition across our economy, driving dynamism, productivity and restraint on prices for the benefit of consumers and business.”
Australia’s current merger regime does not require merger parties to notify the ACCC of proposed acquisitions or to wait for ACCC clearance before proceeding with an acquisition.
Under the reforms, all transactions above a certain threshold must be reported to the regulator.
Mandatory notification requirements would be triggered if the combined Australian turnover of the businesses exceeds $200 million, and either the target business or assets have an Australian turnover above $50 million or a global transaction value exceeding $250 million.
For very large businesses with Australian turnover exceeding $500 million, acquisitions of smaller businesses or assets with Australian turnover above $10 million would require notification.
Any merger involving businesses with a combined Australian turnover above $200 million would be captured if cumulative acquisitions in the same or substitutable goods or services over three years were at least $50 million – or $10 million if a very large business was involved.
In addition to the mandatory notification system, the ACCC was set to receive more powers to deal with “serial acquisitions” where a number of smaller transactions occur over time that cumulatively end up causing serious harm to competition.
The ACCC said the laws would also ensure greater transparency for businesses and the community on all mergers considered by the ACCC, including by requiring the regulator to publish reasons for all final merger decisions.
The treasurer would also be empowered to designate high-risk sectors and impose specific notification thresholds for those sectors.
Cass-Gottlieb said the ACCC would consult with the business community and issue draft guidelines to support the regime’s implementation in 2026.
“As we celebrate these important reforms becoming law, we also are mindful of the importance of supporting a smooth transition as the new regime is bedded down,” she said.
“We will work closely with key stakeholders and will issue draft guidelines for consultation in early 2025 to assist businesses and stakeholders adapt to the new merger regime.”
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