Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to amend the Trade Practices Act 1974 in relation to mergers and acquisitions, and for related purposes
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 27 Nov 2009
Introduced Senate 26 Nov 2009

 

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                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 1Amendment 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.