Treasurer Jim Chalmers MP has announced that the Albanese Government will reform Australia’s merger rules to make it faster, stronger, simpler, more targeted and more transparent.
The changes – which will commence on 1 January 2026 (subject to the passage of legislation) – aim to boost competition and productivity in the economy.
It follows on from the official Competition Review and consultation with industry, plus takes in advice from the Competition Taskforce expert advisory panel made up of David Gonski, Kerry Schott, John Asker, Sharon Henrick, John Fingleton, Danielle Wood and Rod Sims.
The changes also intend to make it easier for the majority of mergers to be approved quickly, so “the ACCC can focus on the minority that give rise to competition concerns”.
Among the main changes, are:
Other updates include having the ACCC take into consideration the cumulative effect of mergers by the acquirer or target within the previous three years “to protect consumers from possible impacts of serial acquisitions in certain industries” and removing the “unnecessary regulatory duplication for businesses” by no longer requiring competition issues to be separately assessed under the Foreign Acquisitions and Takeovers Act of 1975,
‘We will simplify and speed up the process for mergers’
In a joint statement, Treasurer Chalmers and Andrew Leigh MP, the Assistant Minister for Competition, Charities and Treasury and Assistant Minister for Employment said: “Most mergers have genuine economic benefits – allowing businesses to achieve greater economies of scale and scope, helping them to access new resources, technology and expertise.
“However, they can cause serious economic harm when firms are solely focused on squeezing out competitors to capture a larger percentage of the market.”
Treasury flagged that Australia’s competitiveness has been declining since the 2000s, while market concentration has nearly doubled since 2010.
“We will simplify and speed up the process for mergers that are in the national interest and give the regulator stronger powers to identify and scrutinise transactions that pose a risk to competition, consumers and the economy,” they said.
“Competition is a defining feature of our culture and we want to make it a more central, defining feature of our economy as well.
“Competition means more and higher quality choices for consumers, at fairer prices, it makes our businesses more dynamic, more innovative and more productive and expands our economy.
“Competition policy is a growth strategy and reforming our mergers system will benefit businesses as well as consumers and the broader economy.”
They concluded: “We want mergers to drive improvements in productivity, to put downward pressure on prices and to deliver more choice for Australians under the pump with the cost of living.
“These changes will deliver greater benefits to the economy and to consumers and provide certainty to businesses.”
The merger changes come following on from the protracted ANZ-Suncorp merger decision, which was denied by the ACCC before being overturned by the Tribunal. The ACCC has opted not to appeal the Tribunal decision – clearing the way for ANZ and Suncorp to merge later this year (with completion expected around “mid-2024”).
More to come.
[Related: ACCC concerned about voluntary merger notification regime]
