22 May 2009

Capping Creeping Acquisitions

Authors: John Kench

The Government has reaffirmed its election commitment to deal with creeping acquisitions and in its latest discussion paper; Treasury has outlined two proposals as potential solutions. Both proposals use a ‘substantial degree of market power’ test and not the ‘substantial lessening of competition’ test in section 50. Both proposals increase transaction costs for business in mergers and asset sales. Both proposals are of concern as their application may impact any large firm not just Woolworths/Coles buying smaller supermarkets. Treasury has requested submissions by Friday 12 June 2009. For the full version of the article see the PDF at the bottom of this page. Media contacts: Peter Slattery, Managing Partner Phone. +61 8 8239 7114 Mobile. +61 419 819 348 Email. peter.slattery@jws.com.au

Download: Creeping Acquisitions - May 09.pdf (60 Kb)

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