The Australian hotel and pub sector is now operating under a materially different regulatory framework. From 1 January 2026, the Australian Competition and Consumer Commission (ACCC) has implemented a mandatory merger notification regime, replacing the previous voluntary system and introducing a more structured, threshold-based approval process for acquisitions.
From Voluntary to Mandatory Notification
Under the former voluntary regime, transaction parties notified the ACCC only where a deal was considered likely to substantially lessen competition. In practice, most hotel and pub transactions did not require notification, enabling relatively swift completion timelines.
As of 1 January 2026, mandatory notification applies to transactions that meet prescribed thresholds. Notification is now required regardless of the parties’ internal assessment of competition risk, introducing greater regulatory certainty and consistency across the market.
A waiver mechanism is available under the regime, enabling parties to apply for exemption from mandatory notification where the ACCC is satisfied that the transaction poses no material competition risk.
An acquisition that meets the relevant thresholds cannot proceed unless ACCC approval is obtained or a notification waiver is granted.
Notification Thresholds
1. Large Merged Firm Threshold
Notification required where:
• Combined Australian revenue of merger parties is ≥ $200 million, and
• Either:
• Target’s Australian revenue is ≥ $50 million, or
• Global transaction value is ≥ $250 million.
2. Very Large Acquirer Threshold
Notification required where:
• Acquirer group’s Australian revenue is ≥ $500 million, and
• Target’s Australian revenue is ≥ $10 million.
3. Creeping / Serial Acquisition Thresholds
• Medium-to-large firms:
• Combined Australian revenue ≥ $200 million, and
• Cumulative Australian revenue from acquisitions in the previous three years ≥ $50 million (for the same or substitutable goods or services).
• Very large acquirers:
• Acquirer group’s Australian revenue ≥ $500 million, and
• Cumulative Australian revenue from acquisitions in the previous three years ≥ $10 million.
Application Fee: Expected to commence at approximately $25,000.
Clearance Timeframe: Phase 1 review typically around 30 days, with longer timelines possible if further investigation is required.
Additional Asset Acquisition Thresholds
Commencing 1 April 2026
In addition to the revenue-based merger thresholds, the regime introduces mandatory notification requirements for certain asset acquisitions that do not involve all or substantially all of the assets of a business.
Notification is required for these asset acquisitions where the following criteria are met:
Large acquirers
• Acquirer group’s Australian revenue is ≥ $200 million, and
• Global transaction value is ≥ $200 million, and
• The acquisition does not involve all, or substantially all, of the assets of a business.
Very large acquirers
• Acquirer group’s Australian revenue is ≥ $500 million, and
• Global transaction value is ≥ $50 million, and
• The acquisition does not involve all, or substantially all, of the assets of a business.
These thresholds capture asset-only transactions, including acquisitions structured outside of full business or corporate takeovers.
Implications for Major Operators
For larger hospitality groups and pub chains, the regime introduces additional compliance and planning considerations:
• Transaction Timelines: Deals that previously completed quickly may now require formal ACCC clearance, potentially extending completion by several weeks.
• Cost Implications: Filing fees and advisory costs are likely to increase overall transaction expenses.
• Portfolio and Growth Strategy: Groups pursuing portfolio expansion or regional consolidation must actively monitor cumulative acquisition activity, as serial transactions may trigger notification requirements.
• Public Transparency: Notified transactions are recorded on a public register, elevating the importance of clear communication with stakeholders and counterparties.
Smaller operators are generally less exposed unless transacting with very large acquirers or as part of aggregated portfolio sales.
Considerations in the Current Environment
• Review group and target revenues against mandatory thresholds early in the transaction process.
• Incorporate ACCC clearance conditions into transaction documentation and timetables.
• Allow for regulatory review periods when setting completion dates.
• Budget for notification fees and professional advisory costs.
• Monitor ACCC guidance and emerging precedent as the regime beds down.
The mandatory ACCC merger notification regime, now in effect, represents a significant change for the Australian hotel and pub transaction landscape. While the framework is intended to strengthen competition oversight and transparency, it introduces additional mandatory procedural requirements that directly affect deal structuring, timing, and costs.
For owners, operators, and investors, early engagement with the regime is essential to manage risk and maintain transaction momentum in this new regulatory environment.
If the above may influence your operations, consider consulting an independent advisor (including legal advice) to understand its implications on future acquisitions and operational costs.
This article is provided for general information purposes only and is not intended to constitute legal or financial advice.
The regulatory regime described is complex and continues to evolve. Application of the mandatory ACCC merger notification requirements depends on the facts and structure of each transaction, including group revenues, asset scope, and acquisition history. No action should be taken from on the basis of this article alone.
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The postings by any individual on any blog do not necessarily represent the position of Savills, its strategies or opinions.