The Federal Government has unveiled new reforms to strengthen the ACCC’s powers when governing mergers and acquisitions that are concerning, while also streamlining the process for non-concerning propositions.
Treasurer Dr Jim Chalmers will announce the reforms today at the 10th annual Bannerman Competition Lecture in Sydney. The new laws are set to come into force on January 1, 2026, subject to the passage of legislation through the Australian Parliament.
Key parts of the reforms include the speeding up of merger approvals within 30 working days if the regulator sees no concerns, while strengthening and simplifying the processes of merger approvals. This includes introducing a mandatory notification requirement for merger deals above certain thresholds, and a prohibition on merger transactions proceeding without receiving a determination from the ACCC or Tribunal.
Currently Australia's merger regime does not require merger parties to notify the ACCC of proposed acquisitions or to wait for ACCC clearance before proceeding.
The merger laws are also expected to better deal with serial acquisitions, where a number of smaller transactions occur over time that result in serious harms to competition.
In an interview this morning with journalist Sabra Lane on ABC Radio, Chalmers said Australia’s economy is not competitive enough, and has been getting less competitive over recent decades.
According to the Treasury website, new analysis shows that Australia’s competitiveness has been declining since the 2000s, while market concentration has nearly doubled since 2010.
“We want to address that because a more competitive economy is better for consumers, it's better for businesses and it's better for the economy more broadly,” Chalmers said.
“Mergers reform is a big part of that – of making our economy more competitive and that's why we're embarking today on the biggest changes to the mergers regime in something like 50 years.”
Chalmers added that the current system is too hit and miss: “It's voluntary, there are multiple streams that people can choose from. We don't actually know if the right mergers are being scrutinised, so we are going to fix that and that's because we want good mergers to proceed more quickly, but we want concerning mergers to receive a bit more robust scrutiny.”
Currently, there are three paths to merger approval, with the new laws reducing these to a single path to approval that removes duplication and standardises notification requirements for all mergers.
Part of this will include introducing a single expert decision‑making process on all mergers. The law will specify the factors the ACCC must consider for merger applications, helping the regulator to better differentiate between benign acquisitions and those that would entrench or extend market power.
Competition issues will also no longer be separately assessed under the Foreign Acquisitions and Takeovers Act of 1975, removing unnecessary regulatory duplication for businesses.
General notification requirements will apply and the Minister will be given power to introduce additional targeted notification obligations.
“Most mergers are good,” Chalmers continued. “Most mergers are about scale. Most mergers have obvious economic benefits, but there are some which are concerning, where they expand and entrench market power or where they substantially lessen competition.
“These reforms will mean the regime is faster and simpler, more targeted, more transparent, and stronger, but it means that good mergers can proceed quicker and concerning mergers receive a bit more robust scrutiny.”
In Australia's fashion retail industry, major mergers and acquisitions in recent years include the merging of The PAS Group and Brand Collective in 2022.
ACCC chair Gina Cass-Gottlieb welcomed the new reforms, saying they will benefit Australian consumers and businesses of all sizes, as well as the wider economy.
“Higher prices, less choice and less innovation can result from weakened competition,” Cass-Gottlieb said. “Stronger merger laws are critical to ensure anti-competitive mergers do not proceed.
“These proposed changes are significant and will reinforce public confidence in Australia’s competition laws.”
Cass-Gottlieb also welcomed the Treasurer’s announcement that he will seek to appoint industrial organisation economist Dr Philip Williams AM as a Commissioner of the ACCC.
Dr Williams is former executive chair of Frontier Economics and a former Professor of Law and Economics at the University of Melbourne. He has advised law firms as well as the ACCC and the National Competition Council on competition and regulatory issues. Dr Williams holds a Masters in economics from Monash University and a PhD from the London School of Economics.
His appointment is subject to confirmation by the states and territories.