Quiddity Australia M&A Guide 2019

This is part of a series of M&A guides that our Quiddity* team (see our profiles or the footnote below) are publishing to aid investors in understanding the rules, parameters, possibilities, and processes when companies conduct mergers and acquisitions. These insights are designed to be used as a reference.

Governing Law for M&A

The key set of rules and regulations governing the mergers and acquisitions of public companies in Australia are listed below:

• Corporations Act 2001

• Australian Stock Exchange Listing Rules (ASX Listing Rules)

• Foreign Acquisitions and Takeovers Act 1975 (FATA)

In addition to the rules and regulations mentioned in the Laws and Rules noted above, anti-competitive practices are regulated by the Competition and Consumer Act 2010 and certain industries have industry-specific legislation which can impose restrictions on takeovers involving companies falling under those sectors as highlighted in the table below.

Examples for Industry-specific Legislation in Australia

The main regulatory bodies responsible for the oversight of M&A in Australia are listed below:

• The Australian Securities and Investments Commission (ASIC)

• Takeovers Panel

• The Reserve Bank of Australia

• Treasury

• The Australian Prudential Regulatory Authority

• Council of Financial Regulators

• Foreign Investment Review Board (FIRB)

M&A Transactions in Australia

M&A transactions have continued to grow in size since 2013 with last year but still less than half the peak value pre-GFC.

Source: Acquisitions and Alliances (IMAA) analysis