On 10 April 2024, Treasurer Jim Chalmers announced the biggest reforms to Australia's company merger regime in 50 years. According to the Treasurer, these reforms will create a 'faster, stronger and simpler merger system' which will drive productivity and growth in the Australian economy. The reforms are intended to come into effect on 1 January 2026.[1]
The proposed changes will introduce a compulsory merger regime to be overseen by the Australian Competition and Consumer Commission (ACCC). Under the new regime, merger parties will need to notify and seek clearance from the ACCC to proceed with a merger if monetary and market share thresholds are met. The ACCC will be able to expediate run-of-the-mill mergers within 15 working days and will target mergers requiring greater scrutiny.
While the specifics of the reform package are still to be fleshed out, it is apparent that merging parties will face increased administrative burden, high regulatory fees (up to $100,000) and the possibility of drawn out timelines. Unlike the current regime, significant penalties will apply if parties fail to notify the ACCC of the merger and the ACCC will have the power to suspend mergers from proceeding while they are under review.
This article will outline the key reforms proposed by Treasury. It will also summarise the key considerations you should be aware of if you are contemplating a merger from 1 January 2026 and what you can do to begin preparing now.
Tristram Feder, Maddocks LawyersThe proposed changes to the merger regime include:
If you are considering merging or acquiring a business from 1 January 2026, you should consider the following:
For more information, contact Maddocks on (03) 9288 0555 and ask to speak to a member of the Commercial team.
[1] A copy of the Treasury's merger reform paper, Merger Reform: A Faster, Stronger and Simpler System for a More Competitive Economy, can be found here.
[2] Section 50 of the Competition and Consumer Act 2010 (Cth).
Qualifications: BA, LLB, Monash University, LLM, University of Melbourne
Julian is a Partner in Maddocks Commercial team. He advises a diverse range of clients across the Australian commercial and financial services landscape.
Julian's corporate practice spans various sectors, including financial services, professional services, and family-owned enterprises. He advises on:
Julian's financial services practice involves advising financial market participants on the entire financial services lifecycle including fund structuring, management options, and compliance with regulatory requirements.
Julian also offers guidance on alternative and disruptive financial services businesses, such as online foreign exchanges, internal markets, and management rights schemes.
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