Planning to acquire a business in Australia? Your next deal may require regulatory approval before you can complete the purchase.
Since 1 January 2026, Australia has operated a new mandatory merger control regime under the Competition and Consumer Act 2010. Certain business acquisitions must now be notified to the Australian Competition and Consumer Commission (ACCC) and cannot proceed without approval or an applicable notification waiver.
For business owners, investors and companies planning acquisitions, understanding these requirements early can help prevent costly delays and legal complications.
When Is ACCC Approval Required?
Not every business purchase requires ACCC approval. However, under the new rules, notification is generally mandatory when certain financial thresholds are met and no exemption applies.
The key thresholds include:
- $200 million combined Australian revenue: Notification is required where the merger parties have combined Australian revenue of at least $200 million and the target has at least $50 million in Australian revenue or the global transaction value is at least $250 million.
- $500 million acquirer revenue: Businesses with Australian group revenue of at least $500 million generally must notify acquisitions involving targets with at least $10 million in Australian revenue.
- Multiple acquisitions over three years: A series of acquisitions involving the same or substitutable goods or services may trigger notification under cumulative revenue thresholds, even if an individual acquisition is relatively small.
Additional rules apply to certain asset acquisitions and changes in shareholding or voting power. These requirements also depend on the target’s connection with Australia and relevant exemptions.
What If You Are Buying a Small Business?
Most acquisitions between small businesses will not meet the mandatory notification thresholds.
However, a smaller acquisition is not automatically exempt, particularly when a large company is purchasing a smaller competitor or expanding through repeated acquisitions.
Importantly, transactions below the notification thresholds must still comply with competition law. The ACCC can investigate acquisitions that may substantially lessen competition, even where notification was not mandatory.
What Happens If Your Acquisition Requires ACCC Approval?
The ACCC assesses whether the proposed acquisition would be likely to substantially lessen competition.
The process generally involves submitting the required notification, providing supporting business and transaction information, and paying the applicable fee.
Initial assessments can take up to 30 business days, subject to extensions. More complex transactions may progress to a second assessment phase lasting up to an additional 90 business days.
Some acquisitions may qualify for a notification waiver, allowing them to proceed without the full notification process.
Why Businesses Should Act Before Signing or Completing a Deal
Merger control should be considered during acquisition planning, not immediately before settlement.
Failing to identify notification requirements can expose businesses to significant legal consequences, including transaction delays, regulatory intervention and potentially invalid transactions.
Changes effective from 16 September 2026 also refined provisions dealing with non-notified transactions and control exemptions.
Before proceeding, businesses should consider whether their acquisition meets the notification thresholds, raises competition concerns or requires an ACCC clearance condition in the transaction documents.
Buying or Merging With Another Business? Speak With NB Commercial Law.
A business acquisition involves more than agreeing on a purchase price. Regulatory compliance, due diligence, transaction documents and contractual obligations can all affect the success of your investment.
NB Commercial Law can assist with:
- Business acquisition and merger legal advice
- Commercial due diligence and risk assessments
- Share and business sale agreements
- Regulatory compliance and ACCC notification considerations
- Contract negotiation and transaction structuring
Planning your next business acquisition? Speak with our experienced commercial lawyers to understand your legal obligations and protect your commercial interests before proceeding.
Contact NB Commercial Law to discuss your proposed transaction.