ACCC allows NAB equity purchase in Cash Services Australia
The Australian Competition and Consumer Commission will not oppose the National Australia Bank Limited's proposed acquisition of 25 per cent equity in Cash Services Australia Pty Limited following the offer of court-enforceable undertakings* by CSA.
CSA is a joint venture between ANZ, CBA and Westpac, established in 2001 for the purposes of jointly acquiring and re-supplying armoured carrier services and the operation of a cash exchange.
In consulting with the market on the proposed acquisition, market participants raised concerns relating to:
the increased likelihood that NAB would acquire its armoured carrier services through CSA, which may impact on the competitiveness of the market for armoured carrier services
CSA's enhanced ability to control a wholesale cash pool, and that
CSA's shareholder banks would have access to competitively sensitive information.
CSA advised that it has no plans to trade wholesale cash. NAB has also advised the ACCC that it is not currently intending to acquire armoured carrier services from CSA and has committed to give the ACCC six weeks advance notice of any change in this intention.
Following consultation with market participants, the ACCC considers that concerns have been addressed by the undertakings offered by CSA.
ACCC Chairman, Mr Graeme Samuel said no views have yet been formed by the ACCC on any potential customer arrangement, although the ACCC would closely examine such an arrangement should it be proposed.
The undertaking and reasons for this decision will be posted on the ACCC website in due course. (see links below)
Media inquiries
Mr Graeme Samuel, Chairman, 0408 335 555
Dr Stephen King, Commissioner, (02) 6243 1178or 0439 988 901
*These undertakings extend an earlier 2001 undertaking by CSA committing not to place any restriction on price, not to refuse customers services on the basis they have acquired services from a non-CSA supplier, that CSA comply with a confidentiality code of conduct and that it not participate in the wholesale cash market, without providing the ACCC with four weeks notice of its intended commencement.
