2008‑2009

The Parliament of the

Commonwealth of Australia

THE SENATE

Presented and read a first time

Trade Practices Amendment (Material Lessening of Competition—Richmond Amendment) Bill 2009

No.      , 2009

(Senator Xenophon)

A Bill for an Act to amend the Trade Practices Act 1974 in relation to mergers and acquisitions, and for related purposes

Contents

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

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

3............ Schedule(s).......................................................................................... 2

Schedule 1—Amendment of the Trade Practices Act 1974                            3

A Bill for an Act to amend the Trade Practices Act 1974 in relation to mergers and acquisitions, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Trade Practices Amendment (Material Lessening of Competition—Richmond Amendment) Act 2009.

2  Commencement

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

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Amendment of the Trade Practices Act 1974

1  Subsection 50(1)

Repeal the subsection (but not the note), substitute:

             (1)  A corporation must not directly or indirectly:

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

                     (b)  acquire any assets of a person;

if the acquisition would have the effect, or be likely to have the effect, of materially lessening competition in a market.

2  After subsection 50(1)

Insert:

          (1A)  A corporation that has a substantial share of a market must not directly or indirectly:

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

                     (b)  acquire any assets of a person;

if the acquisition would have the effect, or be likely to have the effect, of lessening competition in a market.