Mergers and acquisitions law concerns the processes of buying, selling and combining companies. It is one of the most complex areas of law. Mergers and acquisitions are a normal and important part of the corporate economy but can also cause detriment to a market. Australian law regulates mergers and acquisitions to reduce the risk of detriment.

The Competition and Consumer Act 2010 (Cth) prohibits mergers or acquisitions if they have the effect or likely effect of substantially lessening competition in a particular market. In some situations a company may be granted special authorisation from the Australian Competition and Consumer Commission (ACCC) to merge regardless of any concerns regarding competition. This will usually only be the case if the merger would have a net public benefit.

The Corporations Act 2001 (Cth) also provides rules that must be complied with when a corporate takeover is occurring. These are referred to as the ‘takeover rules’. These rules are administered and enforced by the Australian Securities and Investments Commission (ASIC). ASIC is also responsible for general company compliance.

A merger or an acquisition can be one of the most important business transactions you are ever involved in. It is important to understand the processes for merging your company, the law that regulates mergers and some of the key risks and potential pitfalls.

This Legal Guide on Mergers and Acquisitions Law provides businesses considering a merger with information about merger and acquisition law. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.