AUSTRALIA | The ACCC has released guidance on transitional arrangements to assist businesses and their advisers considering a 2025 merger ahead of Australia’s new merger regime.
Under the new regime, all acquisitions that meet a prescribed threshold must be notified to the ACCC from January 2026.
“The new rules and processes for mergers and acquisitions will be a major change for businesses and the ACCC. Supporting businesses and other stakeholders by providing clarity on key dates and processes is crucial to a successful transition,” said ACCC Chair Gina Cass-Gottlieb.
The new law contained provisions to assist businesses in transitioning to the new regime, including the option for businesses to start using the new regime voluntarily from July 2025.
The guidance indicated how the ACCC has intended to assist businesses in navigating this period, taking into account questions it received about the transition.
In particular, the ACCC has sought to clarify how businesses can engage with the ACCC on their mergers throughout 2025 and what might happen in various potential scenarios. These include whether informal clearances received during 2025 will mean those acquisitions are exempt from the obligation to notify from January 2026.
“A key message is that if businesses are considering seeking an informal merger review after 1 July 2025, it is important they engage with us as soon as possible. This will help manage the risk that there won’t be enough time for the ACCC to complete its assessment before the new mandatory merger review process comes into effect.”
The ACCC will continue to work with businesses to navigate the transition to the new regime. The guidance may be progressively updated to ensure it addressed new emerging questions.
“We are committed to ensure the transition to the new mandatory regime is transparent and smooth.”
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 with the acquisition.
The Australian Parliament passed the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 on the 28th of November 2024. The ACCC welcomed the new legislation.
Under the new regime, all transactions above a prescribed threshold must be notified to the ACCC.
The ACCC first released proposed merger reforms at the Law Council conference in 2021. ACCC Chair Gina Cass-Gottlieb commenced her term in 2022. She has continued to advocate for merger reform including at the National Press Club in April 2023.
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