The Australian Competition and Consumer Commission will implement new processes for reviewing informal merger proposals from Monday.
The processes, outlined in the ACCC's Guideline for Informal Merger Reviews, will be applied to all new complex merger proposals received by the ACCC from Monday 18 October 2004. The Guideline will supplement the existing Merger Guidelines.
"By adopting changes to the review process, the ACCC is seeking to provide greater transparency and accountability of its reviews while preserving the benefits of the existing informal system", ACCC Chairman, Mr Graeme Samuel, said today.
However, the ACCC did not believe the review process outlined in the Guideline will remain static.
"Given the nature of the informal review process, it is likely that the Guideline may undergo further development and refinement in the future.
"The new processes have recently been the subject of extensive public consultation with key industry players and the Guideline for Informal Merger Reviews has now been finalised taking into consideration the comments raised by interested parties".
Broadly speaking the new processes will result in the following changes:
- the establishment of a new register on the ACCC's internet site where information (eg timelines, Statement of Issues, Public Competition Assessments) concerning merger proposals will be posted – subject to appropriate protection of confidentiality requirements.
- the provision of indicative timelines for the more complex merger assessments. These timelines will be developed by ACCC staff and, when possible, in consultation with the merger parties, before the commencement of the assessment. When it is deemed appropriate, 'clock stoppers' will be included in the timelines.
- the provision of a Statement of Issues for proposals when competition issues have been identified following appropriate consultation with the merger parties and those issues require further information and consideration. This statement will be placed on the public register on the ACCC internet site.
- an expansion in the provision of Public Competition Assessments (these outline the basis for reaching a final conclusion on a transaction proposal) to include those matters where:
- a merger is rejected
- a merger is subject to enforceable undertakings
- the merger parties seek such disclosure, or
- a merger is approved but raises important issues that the ACCC considers should be made public.
- additional guidance as to communication between the merger parties, their advisers and the ACCC staff and Commissioners.
- additional guidance concerning the types of information that should be submitted by the merging parties in order to ensure a proper assessment by the ACCC.
Mr Samuel said that following any further development and refinement, the processes for reviewing informal merger proposals contained in the Guideline would be incorporated into the existing ACCC Merger Guidelines.
A copy of the Guideline for Informal Merger Reviews will be available on the ACCC's website.