Important update: Transition to Australia's new mandatory merger control regime

As of 28 November 2024, significant changes were enacted by the Australian Parliament introducing a new mandatory and suspensory merger control regime, representing a major shift in merger and acquisition procedures under the Competition and Consumer Act 2010 (CCA).

Currently, businesses can voluntarily notify acquisitions to the Australian Competition and Consumer Commission (ACCC) either through informal clearance or merger authorisation. However, this landscape will dramatically shift with a phased transition:

• Voluntary notifications: From 1 July 2025, businesses have the option to voluntarily use the new mandatory regime, offering greater certainty around statutory timelines and approval processes.

• Mandatory notifications: Starting 1 January 2026, notification becomes compulsory for acquisitions meeting specified thresholds, with mandatory ACCC approval required before completion.

Key considerations for businesses and advisers during the transition include:

• Informal clearances ending: The ACCC's informal clearance option will cease on 31 December 2025. Businesses pursuing this route should engage early, ideally before October 2025, to avoid disruption.

• Merger authorisations closing: Merger authorisation applications will no longer be accepted post-30 June 2025. Any authorisations not finalised by year-end 2025 will not continue under the old regime and must transition to mandatory notification if thresholds are met.

• Transitional provisions: Acquisitions cleared informally or through authorisation before the regime change may remain exempt from mandatory notifications if completed within 12 months from clearance.

• Notification waivers: Businesses may apply for waivers from mandatory notification requirements under certain conditions. More guidance from the ACCC on this is expected later in 2025.

Given these substantial changes, careful strategic planning is essential for businesses and their advisers. Engaging with the ACCC early, particularly during the transition window, will be key to managing compliance risks and achieving transaction certainty.

For further advice or to discuss how these changes impact your acquisition strategy, please contact our M&A team.

This article provides general commentary only. It is not legal advice. Before acting on the basis of any material contained in this article, seek professional advice.