Australia is overhauling its merger and acquisition (M&A) rules as the government seeks to increase competition in highly concentrated areas of the economy, such as retailing and banking, while also streamlining approvals of uncontentious deals.  

Under the changes, the competition regulator will have to be notified of all proposed deals above monetary and market share thresholds, ensuring takeovers most likely to impact consumers are subject to sufficient scrutiny, Treasurer Jim Chalmers said in a statement on Wednesday. The regulator will also be able take into account previous acquisitions when determining whether a deal would lessen competition. 

“Most mergers have genuine economic benefits - allowing businesses to achieve greater economies of scale and scope, helping them to access new resources, technology and expertise,” Chalmers said in the statement. “However, they can cause serious economic harm when firms are solely focused on squeezing out competitors to capture a larger percentage of the market.” 

The last major deal the Australian Competition and Consumer Commission (ACCC) tried to block was ANZ Group Holdings Ltd’s A$4.9 billion (US$3.2 billion or RM15.42 billion) acquisition of smaller rival Suncorp Group Ltd’s banking arm, saying it would reduce competition in the home-lending market. However, that decision was eventually overturned in court after ANZ appealed. 

ACCC chair Gina Cass-Gottlieb has been pushing for an updated M&A rulebook, saying that consumers and businesses will pay higher prices and have less choice if anti-competitive mergers are able to continue to proceed. She welcomed the reforms that are expected to start in January 2026. 

“Higher prices, less choice and less innovation can result from weakened competition,” Cass-Gottlieb said in a statement. “Stronger merger laws are critical to ensure anti-competitive mergers do not proceed.”

In an effort to streamline some deals, takeovers that raise no competition concerns will be approved within 30 working days, Chalmers said.

  - Bloomberg