Invest
Antitrust authorities step up their game in M&A scrutiny
In 2023, the landscape for mergers and acquisitions (M&A) has seen significant challenges due to increased scrutiny from antitrust authorities, as highlighted in the latest Global Trends in Merger Control Enforcement report by A&O.
Antitrust authorities step up their game in M&A scrutiny
In 2023, the landscape for mergers and acquisitions (M&A) has seen significant challenges due to increased scrutiny from antitrust authorities, as highlighted in the latest Global Trends in Merger Control Enforcement report by A&O.
The report noted a significant rise in prohibited transactions, with over a 50% increase compared to previous years. This heightened vigilance has been particularly evident in the digital and private equity sectors, where authorities have shown a reluctance to accept remedies for concerns, opting instead to block deals outright.
The data, gathered from 26 jurisdictions, places a spotlight on the U.S., EU, UK, and APAC regions, with Australia facing some of the most rigorous examinations. Here, the Australian Competition and Consumer Commission (ACCC) blocked four deals in 2023, marking the highest number since A&O began its reports. Additionally, the ACCC completed an unprecedented seven phase two reviews.
Lisa Emanuel, a Sydney partner at A&O, expressed concerns about the evolving antitrust environment in Australia. "Dealmakers in Australia are facing an increasingly tough antitrust environment," she said, emphasizing the ongoing and planned major reforms to the Australian merger control regime. Emanuel also pointed out the global trend of authorities extending their reach to review M&A transactions below merger control filing thresholds, adding complexity and uncertainty for those involved in mergers.
Particularly noteworthy is the ACCC’s attention to private equity firms holding minority stakes in competing businesses, flagged as a potential antitrust concern due to their capacity to influence competitive decisions significantly.
Digital and tech sectors also faced headwinds, with 20% of global deals being blocked as authorities extended their enforcement efforts. Despite tech deals accounting for a quarter of all global M&A, antitrust interventions in this sector were comparatively lower yet showed a significant increase from the previous year.
Emanuel also highlighted the Australian regulators' flexibility in cases where sustainability benefits outweigh competition concerns. An example of this is the conditional authorization of the acquisition of Origin Energy by Brookfield and MidOcean, which is seen as a move to expedite the energy transition in the country.
The report reveals interesting trends in foreign investment (FI) screenings, the sectoral focus of antitrust interventions, and the rise in sanctions for procedural merger control infringements, indicating a tough stance on non-compliance.
These findings underline a global shift towards more rigorous antitrust scrutiny in M&A markets, with implications for dealmakers worldwide, particularly in sectors like consumer, life sciences, transport, and energy.
Investment insights
Fed doves cheered by soft US jobs data, but inflation concerns linger
Friday's US jobs data brightened the mood among Federal Reserve (Fed) doves, as the nonfarm payrolls (NFP), unemployment rate, and wages all pointed to a slowing labour market in April, according to ...Read more
Investment insights
Fed rate cut expectations in doubt as inflation concerns persist
Investors are bracing for a less-than-cheerful Federal Reserve (Fed) monetary policy decision later today, as the central bank grapples with three straight months of rising inflation, which may force ...Read more
Investment insights
Centuria announces senior internal promotions, strengthening leadership team for new property growth cycle
Centuria Capital Group (ASX: CNI or "Centuria") has strengthened its senior management structure with several internal promotions, effective from Monday, 15 April 2024. The new senior roles are part ...Read more
Investment insights
Institutions and wealth managers favour fixed income over equities, research shows
New research from Managing Partners Group (MPG), the international fund management group, shows professional investors believe fixed income is becoming more attractive than equities over the next 12 ...Read more
Investment insights
Gold prices soar to record high: Two surprising factors fueling the surge
Gold prices have hit a fresh record high, nearing $2,300 an ounce in Thursday trading, and while geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve are commonly ...Read more
Investment insights
Alternative fund managers expect increased fines for regulatory breaches, survey reveals
A new study by Ocorian, a market leader in regulation and compliance services, has revealed that alternative fund managers anticipate a rise in fines for breaking regulations in their sectorsRead more
Investment insights
Institutional investors set to increase allocations to illiquid assets, MPG research reveals
A new study by international asset management company Managing Partners Group (MPG) has found that more than three-quarters (78%) of institutional investors and wealth managers plan to increase their ...Read more
Investment insights
Vanguard reduces management fee for its Australian Government Bond Index ETF
Vanguard Australia has announced a reduction in the management fee for its Vanguard Australian Government Bond Index ETF (ASX:VGB) by four basis points to 0.16% per annum, effective from Monday. Read more
Investment insights
Fed doves cheered by soft US jobs data, but inflation concerns linger
Friday's US jobs data brightened the mood among Federal Reserve (Fed) doves, as the nonfarm payrolls (NFP), unemployment rate, and wages all pointed to a slowing labour market in April, according to ...Read more
Investment insights
Fed rate cut expectations in doubt as inflation concerns persist
Investors are bracing for a less-than-cheerful Federal Reserve (Fed) monetary policy decision later today, as the central bank grapples with three straight months of rising inflation, which may force ...Read more
Investment insights
Centuria announces senior internal promotions, strengthening leadership team for new property growth cycle
Centuria Capital Group (ASX: CNI or "Centuria") has strengthened its senior management structure with several internal promotions, effective from Monday, 15 April 2024. The new senior roles are part ...Read more
Investment insights
Institutions and wealth managers favour fixed income over equities, research shows
New research from Managing Partners Group (MPG), the international fund management group, shows professional investors believe fixed income is becoming more attractive than equities over the next 12 ...Read more
Investment insights
Gold prices soar to record high: Two surprising factors fueling the surge
Gold prices have hit a fresh record high, nearing $2,300 an ounce in Thursday trading, and while geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve are commonly ...Read more
Investment insights
Alternative fund managers expect increased fines for regulatory breaches, survey reveals
A new study by Ocorian, a market leader in regulation and compliance services, has revealed that alternative fund managers anticipate a rise in fines for breaking regulations in their sectorsRead more
Investment insights
Institutional investors set to increase allocations to illiquid assets, MPG research reveals
A new study by international asset management company Managing Partners Group (MPG) has found that more than three-quarters (78%) of institutional investors and wealth managers plan to increase their ...Read more
Investment insights
Vanguard reduces management fee for its Australian Government Bond Index ETF
Vanguard Australia has announced a reduction in the management fee for its Vanguard Australian Government Bond Index ETF (ASX:VGB) by four basis points to 0.16% per annum, effective from Monday. Read more