What early childhood providers need to know about mandatory merger clearance in 2026

As Australia enters 2026, one of the most significant competition law changes in decades will come into effect, and early childhood education and care (ECEC) providers should be aware of what it means for the sector. From 1 January 2026, a mandatory, suspensory merger clearance regime will require certain large business acquisitions to be reviewed and approved by the Australian Competition and Consumer Commission (ACCC) before they can proceed.

• Businesses proposing to acquire shares or assets above certain thresholds must notify the ACCC before completing the transaction.
• The ACCC will assess whether the proposed merger would substantially lessen competition in any relevant market.
• If the regulator does not grant clearance, the acquisition cannot legally be completed.

• Greater negotiating certainty when engaging with larger providers, investors or potential acquirers.
• Reduced risk of sudden market consolidation that can narrow options for families and providers alike.
• Stronger competition protections, particularly in regional and urban markets where a handful of large networks may seek to expand rapidly.

• The ACCC will determine whether a proposed acquisition is likely to reduce competition to the detriment of consumers or small business rivals.
• Assessments will consider the structure of the relevant markets, the competitive constraints that remain and the likely impact on pricing, quality, innovation and choice.
• The clearance process must be completed before the transaction is settled, a significant shift from the previous voluntary notification system.

• Board and leadership planning: Boards should be aware of emerging trends in sector consolidation and competition law.
• Service strategy: Understanding when and how the ACCC intervenes can inform decisions about partnerships, joint ventures or formal collaborations.
• Risk management: Services can better anticipate how changes in local markets may affect staffing, funding negotiations or family choice.