(8 October 2009 – Australia) The ACCC will not oppose the proposed acquisition of Challenger’s mortgage management business by NAB.The Australian Competition and Consumer Commission (ACCC) conducted an investigation into the potential National Australia Bank (NAB) might have in restricting competition from rival lenders and broker distribution platforms.
The investigation involved comprehensive market inquires with a wide range of relevant parties and concluded that the acquisition would not substantially lessen competition.
In forming its decision the ACCC’s market inquiries revealed that NAB’s proposed acquisition of the Challenger mortgage portfolio will only increase its share of the Australian home loan market by less than one percent.
The acquisition will also see NAB entering into the business of broker distribution (mortgage aggregation).
The proposed plan is to acquire Challenger’s broker distribution businesses of Choice and PLAN.
They are also set to purchase FAST, a multi-brand ‘white label’ lending business that provides wholesale mortgages to mortgage managers.
These acquired groups currently have a combination of exclusive and non-exclusive relationships’ with approximately 40 percent of brokers nationally.
The ACCC said that although Challenger had a high share of affiliations, brokers have the ability to change to alternative broker distribution platforms.
NAB will be acquiring a portion of Challenger’s residential mortgage portfolio but will not be acquiring the commercial mortgage portfolio.