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About merger and acquisitions

When a business buys the shares or assets of another business, it can become more efficient and innovative. This can result in lower prices, higher quality products or increased innovation. These all have benefits for consumers and the Australian economy.

Some acquisitions can impact the level of competition that remains in a market. Often, this impact will be minimal.

However, some acquisitions can substantially lessen competition. They can reduce the number of competitors and change the way remaining competitors behave.

A new mandatory merger control regime

Australia’s mandatory merger control regime is in effect from 1 January 2026. It aims to identify and prevent anti-competitive acquisitions. At the same time, it allows acquisitions that don’t raise competition issues to proceed as quickly as possible.

In 2024, the Australian Parliament passed the Treasury Laws Amendment (Mergers and Acquisitions Reform) Act 2024.

This new law changed Australia’s merger control from a judicial enforcement model to a primarily administrative model.

Under the old system, it was not compulsory for businesses to notify the ACCC of an acquisition. Businesses could choose to seek our views on their acquisition to reduce the risk of legal action. However, this was optional. When the ACCC considered that an acquisition would substantially lessen competition and the businesses didn't amend or abandon their proposal, the ACCC could commence court action. This was done to prevent or unwind the acquisition.

Under the new mandatory merger control regime, businesses must notify proposed acquisitions which meet certain thresholds, and are not otherwise exempt. They must then wait for the ACCC’s approval before the acquisition can proceed.