Thinking of merging or acquiring another business? Major changes to Australia’s merger laws are coming — and they could reshape how deals get done from 2026.
What Is A Merger?
A merger occurs when two or more companies combine to form a single entity, aiming to enhance efficiencies, expand market reach, or achieve strategic objectives.
While mergers can offer significant benefits, they also raise concerns about reduced competition, potential monopolies, and impacts on consumers.
Current Merger Control in Australia
Presently, Australia’s merger control operates on a voluntary basis.
Businesses are not required to notify the Australian Competition and Consumer Commission (ACCC) of proposed mergers. However, they may seek the ACCC’s informal review to assess whether a merger might substantially lessen competition under Section 50 of the Competition and Consumer Act 2010.
Upcoming Changes: New Mandatory Merger Control Regime
Significant reforms are set to reshape Australia’s merger control framework:
- Voluntary Notification Period: Starting 1 July 2025, businesses can opt to notify the ACCC of proposed mergers under the new regime.
- Mandatory Notification: From 1 January 2026, it will become compulsory for businesses contemplating acquisitions that meet specified thresholds to notify the ACCC and obtain approval before proceeding.
These changes transition Australia’s merger control from a judicial enforcement model to a primarily administrative one, granting the ACCC the authority to assess and decide on notified mergers.
Implications for Businesses
Businesses planning mergers or acquisitions should:
- Stay Informed: Understand the new notification thresholds and requirements.
- Engage Early: Initiate discussions with the ACCC early in the merger planning process to ensure compliance and address potential competition concerns.
- Prepare Documentation: Gather necessary information and documentation to support the notification and assessment process.
The ACCC aims to provide clearer timelines, greater transparency, and streamlined processes under the new regime, facilitating more efficient merger assessments.
For detailed guidance and updates on the merger reform, businesses can refer to the ACCC’s official resources and consider subscribing to merger reform updates.
