Opinion
Deal makers trumped by economists in M&A shake-up
Lawyers and bankers will lose from the merger overhaul that attempts to tackle economic concerns that industry concentration has led to higher prices and fewer start-ups.
John KehoeEconomics editorThe tougher merger rules announced by Jim Chalmers hands more power to economists and regulators worried about industry concentration, and offers a narrower path for companies and deal makers to get mergers over the line.
While the $4.9 billion ANZ-Suncorp Bank takeover would likely have survived under the new regime, the competition watchdog will have a strong prospect of blocking future deals similar to the $11 billion Tabcorp-Tatts Group merger, the $15 billion merger of equals between TPG Telecom and Vodafone Hutchison, and Pacific National’s purchase of Aurizon’s rail assets, competition lawyers say.
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