find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
M&A lawyers to be kept busy by ACCC in 2011

M&A lawyers to be kept busy by ACCC in 2011

Two of Australia's leading M&A lawyers predict the Australian Competition and Consumer Commission (ACCC) will be more interventionist next year, and corporations will be willing to take them…

Two of Australia's leading M&A lawyers predict the Australian Competition and Consumer Commission (ACCC) will be more interventionist next year, and corporations will be willing to take them on.

Tony Damian and Neil Pathak at Freehills have produced a report comprising their top 10 predictions for M&A in 2011.

While not surprisingly resources generated work is at the top of their list, more schemes of arrangement, increased interest from private equity entities and an increasingly vigilant ACCC all feature prominently in their crystal ball gazing for 2011.

"The ACCC has already blocked a number of proposed mergers in 2010, so to some extent, that prediction is already coming true," Neil Pathak said.

"We get the sense that some company boards might be more willing to challenge some of those ACCC rulings, especially if they are of the belief the decision [to oppose] was not a correct one."

Freehills is currently acting for its long-term client, Metcash, in its move to acquire the Franklins group.

The ACCC opposes Metcash's bid on the basis that it would substantially lessen competition. Metcash, which argues the deal would benefit consumers, has indicated that it will challenge the ruling of the ACCC in the Federal Court.

Both Damian and Pathak agree that there is every possibility more companies that are parties to proposed M&A deals will look to use the court system in 2011 to challenge adverse ACCC findings.

Tony Damian is also optimistic that the private equity market will continue to remain buoyant in 2011, commenting that "it is the perfect environment for private equity deals in Australia right now", with debt becoming more accessible and before asset prices increase further on the back of the recovering economy.

In the second half of 2010, private equity, which was strong before the global financial crisis, rebounded somewhat with two large transactions; The Carlyle Group and TPG Capital acquiring Healthscope for $2.7 billion and the $1.75 billion offer by US private equity firm Kohlberg Kravis Roberts for Perpetual Limited.

Despite the signs of renewed interest in Australia from foreign private equity consortiums, a recent tax ruling has thrown some uncertainty into the market as it approaches the new year. Just last week the Australian Tax Office upheld a draft ruling classifying asset sales from private equity firms as income, to be taxed accordingly, and not as a capital gain.

Tony Damian also nominated Brisbane as an emerging centre for corporate work, while Pathak, the head of Freehills' India practice, believes India will become an increasingly important market for Australian energy and resources companies.

"That has already been happening over the last 15 years as India has opened itself up to the rest of the world," he said. "As compared to China, where a lot of activity [for Australian resources] has been driven by state-owned enterprises, in India the growth will come from private companies."

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

M&A lawyers to be kept busy by ACCC in 2011
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
microphone
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
protest
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Blocked
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...