Moving To a Mandatory Administrative Merger Control Regime Natalie Tran
A Shift to Mandatory Merger Approvals
Commencing from 1 January 2026, Australia will be implementing a new and significant overhaul of its merger control regime. The ACCC will be moving from a largely voluntary review system to a more suspensory and mandatory approval framework for acquisitions and mergers that are capable of meeting such prescribed financial thresholds.
Under this new regime, qualifying transactions shall now be notified to the ACCC and without further ado, cannot be completed until clearance is granted or a waiver is permitted. Such change marks a clear departure from the current approach we hold, where parties can choose whether or not to notify the ACCC and may proceed whilst a review is still ongoing. These reforms are aimed to prevent anti-competitive mergers before they occur, rather than the act of addressing competition harm after completion.
The Faster Path for Low-Risk Deals
In order to ensure that the new system does not unnecessarily slow down any deal activities, the reforms have introduced a new streamlined assessment pathway. These include statutory timeframes for ACCC decision making and notification waivers for clear low risk transactions.
Furthermore, the ACCC expects that the majority of notified deals are to be resolved quickly and efficiently, allowing proceedings to carry along with greater certainty where competition concerns are deemed unlikely.
What Does This Mean for Your Business
The changes will impact all the Australian businesses involved in mergers and acquisitions, including those of private equity firms, foreign investors and serial acquirers. Regulatory engagement and competition analysis will need to occur much earlier in the transaction planning process.
Whilst compliance obligations are going to increase for larger scale transactions, the reforms are aimed to deliver a higher level of transparency, predictability and an internationally aligned merger control system, essentially, strengthening competition whilst enabling timely and efficient deal making.
Natalie Tran
December 25
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
