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In Penrith, Australia, just like anywhere else in the country, Mergers & Acquisitions (M&A) represent key mechanisms for corporate growth, restructuring, and financing. The norms and legal procedures associated with M&A are governed by the Corporations Act 2001 (Cth), regulated by the Australian Securities and Investments Commission (ASIC) and might be subject to review by the Australian Competition and Consumer Commission (ACCC) in case of competition concerns.
A strategic merger or acquisition is a complex procedure involving numerous legal considerations. An expert M&A lawyer can help navigate complex regulations, draft or review legal documents like term sheets, conduct due diligence, and manage share purchase agreements. If you're a business owner looking to acquire another business, a shareholder selling your shares, a startup seeking investors, or a multinational company planning on a strategic merger, a lawyer specialised in M&A can guide you through the process, minimize your risk, and ensure your interests are protected.
The Australian takeovers regime prohibits acquisitions of relevant interests in voting shares in a company listed on the Australian Stock Exchange or with more than 50 members, above the 20% threshold, unless the acquisition is made under one of the exceptions in the Corporations Act, such as through a formal takeover bid, a scheme of arrangement or with the approval of shareholders. Also, Australian law requires mandatory notification of M&A transactions crossing certain thresholds in specific industries under the Competition and Consumer Act 2010. Penalties for breach can be quite severe, hence professional legal guidance is indispensable.
Yes, under the Competition and Consumer Act 2010, if the combined Australian turnover of the acquiring company and the target company exceeds AUD 400 million, then the merger may need clearance from the ACCC.
Directors usually have fiduciary duties towards the company and shareholders during an M&A transaction. They are required to act in the best interests of the company, and are often instrumental in decision-making relating to the potential transaction.
Whilst not always legally mandatory, it is often considered good practice to communicate with employees about the proposed transaction and potential implications on their employment.
This is a rule under the Corporations Act. It stipulates that a person who legally owns at least 20% of the voting shares in a company may acquire more shares above the 20% threshold provided they do not acquire more than 3% additional in every six month period.
Yes, the ACCC can stop mergers and acquisitions if they threaten to substantially lessen competition in any Australian market.
For further information, you may refer to Australian Securities and Investments Commission (ASIC) and Australian Competition and Consumer Commission (ACCC). Case studies and other resources are available on their websites.
If you require legal assistance, consult a reputable lawyer who specialises in M&A law. They will help you understand your legal obligations and rights, guide you through each phase of the M&A transaction – from due diligence to negotiation to final documentation – and ensure that your business interests are preserved.
