(15 August 2008 – Australia) The Australian Competition and Consumer Commission has announced that it will not oppose the merger between Westpac and St George banks.The Australian Competition and Consumer Commission (ACCC) has concluded that the proposed acquisition of St George by Westpac is unlikely to substantially lessen competition under section 50 of the Trade Practices Act 1974 in the markets in which they compete.
ACCC chairman, Graeme Samuel, said that the decision was reached after conducting a comprehensive review of the proposed acquisition.
The review included extensive market inquiries with a range of interested parties, confidential surveys by the ACCC, and also considered internal documents of the merger parties.
The ACCC reached the conclusion that, while St George Bank is a relatively innovative and dynamic competitor with a strong focus on customer service, other competitors to the merged entity which remain in the market will continue to play a similar role.
Samuel added that the ACCC considered that competition in retail banking markets provided by the other major banks, and regional banks along with credit unions, building societies and niche players, would be sufficient to constrain the merged firm after the acquisition.
The ACCC acknowledged the role that regional banks play, particularly as they have begun to enter states outside their home state.
Further market inquiries into the possible concern of wealth platforms have revealed that there are a range of substitutable products, including master trust platforms and, increasingly, separately-managed accounts, available to financial planning businesses and investors.