Advice for ECEC providers who have mergers on the horizon 

The Australian Competition and Consumer Commission (ACCC) has released guidance on merger reform transition which may be of use to owners and operators in the early childhood education and care (ECEC) sector, and other sectors and industries whose business dealings overlap with ECEC. 

The guidance on transitional arrangements has been created to assist businesses and their advisers considering a merger in 2025, ahead of Australia’s new merger regime coming into effect.

Under the new regime, all acquisitions that meet a prescribed threshold must be notified to the ACCC from 1 January 2026.

“The new rules and processes for mergers and acquisitions will be a major change for businesses and the ACCC. Supporting businesses and other stakeholders by providing clarity on key dates and processes is crucial to a successful transition,” ACCC Chair Gina Cass-Gottlieb said.

The new law contains provisions to assist businesses to transition to the new regime which include the option for businesses to start using the new regime on a voluntary basis from 1 July 2025.

The guidance indicates how the ACCC intends to assist businesses navigate this period, taking into account questions that have been received about the transition.

In particular, the ACCC has sought to clarify how businesses can engage with the ACCC on their mergers throughout 2025 , and what might happen in a range of potential scenarios. These include whether informal clearances received during 2025 will mean those acquisitions are exempt from the obligation to notify from 1 January.

“A key message is that if businesses are considering seeking an informal merger review after 1 July 2025, it is important they engage with us as soon as possible,” Ms Cass-Gottlieb said.

“This will help manage the risk that there won’t be enough time for the ACCC to complete its assessment before the new mandatory merger review process comes into effect.”

The ACCC will continue to work with businesses to navigate the transition to the new regime and the guidance may be progressively updated to ensure it addresses new questions that emerge.

“We are committed to ensure the transition to the new mandatory regime is transparent and smooth,” Ms Cass-Gottlieb added.

Businesses, advisers, consumers and other interested members of the community can now subscribe for updates on merger reform on the ACCC website: Subscribe to merger reform updates

The ACCC encourages businesses considering a merger during the transition to contact them via email to [email protected]