The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, has released a discussion paper calling for public comment on the best way forward for a creeping acquisitions law.

Creeping acquisitions refer to the cumulative effect of a number of small, individual transactions, which when considered in isolation, might not be captured by the existing mergers and acquisitions test under section 50 of the Trade Practices Act.

Concerns about creeping acquisitions usually arise when a supplier with a substantial degree of market power looks to acquire smaller competitors.

In its Grocery Report the ACCC describes creeping acquisitions as a ‘series of acquisitions of smaller competitors over time which individually do not raise competition concerns, but which when taken together may have a significant competitive impact. Creeping acquisition might also refer to a player with existing market power making a small acquisition, even though the small acquisition does not substantially lessen competition in itself’. (xxi, Overview)

The closing date for submissions is Friday 10 October 2008.