2004‑2005‑2006‑2007

The Parliament of the

Commonwealth of Australia

THE SENATE

Presented and read a first time

Trade Practices (Creeping Acquisitions) Amendment Bill 2007

No.      , 2007

(Senator Fielding)

A Bill for an Act to regulate creeping acquisitions, and for related purposes

Contents

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 1

3............ Objects................................................................................................ 2

4............ Schedule.............................................................................................. 2

Schedule 1—Amendments of the Trade Practices Act 1974                          3

A Bill for an Act to regulate creeping acquisitions, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Trade Practices (Creeping Acquisitions) Amendment Act 2007.

2  Commencement

                   This Act commences on the day on which it receives the Royal Assent.

3  Objects

                   The object of this Act is to regulate creeping acquisitions to promote fair competition.

4  Schedule

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments of the Trade Practices Act 1974

1  At the end of section 50

Add:

             (7)  For the purposes of the application of subsection (1) in relation to a particular corporation, an acquisition shall be deemed to have the effect, or be likely to have the effect, of substantially lessening competition in a market if the acquisition and any one or more other acquisitions by the corporation or a body corporate related to the corporation in the period of 6 years ending on the date of the first mentioned acquisition together have the effect, or are likely to have that effect.

             (8)  For the purposes of the application of subsection (2) in relation to a particular person, an acquisition shall be deemed to have the effect, or be likely to have the effect of substantially lessening competition in a market if the acquisition and any one or more other acquisitions by the person in the period of 6 years ending on the date of the first mentioned acquisition together have that effect, or are likely to have that effect.

2  After subsection 50A(1B)

Insert:

          (1C)  For the purposes of the application of subsection (1) in relation to a particular person, an obtaining of a second controlling interest shall be deemed to have the effect, or be likely to have the effect, of substantially lessening competition in a market if the obtaining of the second controlling interest and any one or more other relevant transactions by the person or an associate of the person in the period of 6 years ending on the date of the obtaining of the second controlling interest together have that effect, or are likely to have that effect.

3  Subsection 50A(9)

Insert:

associate of the person means:

                     (a)  where the person is a body corporate, a related body corporate;

                     (b)  where the person is a natural person, a body corporate in which the person has a controlling interest by reason, but not necessarily by reason only, of the application of subsection (8).

relevant transaction means:

                     (a)  the acquisition of shares in the capital of a body corporate; or

                     (b)  the acquisition of any assets of a person; or

                     (c)  the acquisition of another second controlling interest in a corporation or each of 2 or more corporations.