Companies will be required to notify the competition watchdog of mergers of a certain size in a major revamp of, will announce that the government will overhaul the voluntary system that has left the Australian Competition and Consumer Commission flying blind when scrutinising mergers, because the regulator is only informed of about a quarter of mergers.
Instead, it will tweak the merger test and bring three years of transactions within the scope of mandatory notification in order to prevent serial or creeping acquisitions flying under the radar. Chalmers says the government wants to tackle mergers that “can cause serious economic harm” because “they’re solely focused on squeezing out competitors to capture a larger percentage of the market” rather than lifting productivity.
“We welcome the treasurer’s announcement today that the government will move to strengthen Australia’s merger laws, which will benefit Australian consumers and businesses of all sizes, as well as the wider economy,” ACCC chair, Gina Cass-Gottlieb says. The thresholds – which will include a measure of market share – will be determined in 2024 ahead of the new system commencing in January 2026.Our Australian afternoon update breaks down the key stories of the day, telling you what’s happening and why it mattersThe proposal paper says “all mergers within the previous three years by the acquirer or the target” will count towards the threshold.
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Source: FinancialReview - 🏆 2. / 90 Read more »