Merger Reform Bill Introduced

The Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 has been introduced into Parliament today. The Explanatory Memorandum summarises the changes as follows:

The Bill:

• introduces a requirement for certain acquisitions of shares or assets to be notified to the Commission for assessment prior to completion, with penalties to support compliance;

• establishes a new administrative system where the Commission will undertake an economic and legal assessment of whether the acquisition is likely to substantially lessen competition in a market, or is of public benefit;

• streamlines the assessment of mergers and acquisitions with clear suspensory timelines;

• promotes integrity and good decision-making by providing for review of Commission decisions by the Tribunal;

• enhances transparency through establishment of a public register of notified acquisitions and other procedural safeguards;

• provides that fees are payable for certain actions under the reforms.

If passed the change to a mandatory and suspensory administrative system for mergers will commence on 1 January 2026, but parties will be able to start using the new regime on a voluntary basis from 1 July 2025.

Legislation

• Read Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024

• Read Explanatory Memorandum

ACCC

• Read ACCC media release welcoming introduction of the bill

• Read ACCC Statement of Goals for Merger Reform Implementation

Treasury

• Treasurer, The Hon Dr Jim Chalmers MP and Assistant Minister for Competition, The Hon Andrew Leigh MP, ‘Historic reforms for a more competitive economy enter Parliament’ (10 October 2024)

• Treasurer, The Hon Dr Jim Chalmers MP, ‘Modernising merger approvals to bring them into the 21st century’ (Australian Financial Review, 10 October 2024)