Customers Limited - proposed acquisition of ATM Solutions
Outcome of assessment
Not opposed
Total review days *
36
Commenced public review
2nd January 2007
Date completed
21st February 2007
Market definition
The ACCC considered the relevant markets to be:
- Local markets for consumer cash dispensing through ATMs
- A national market for ATM deployment to merchants
Competition analysis
The ACCC found the proposed acquisition was unlikely to result in a substantial lessening of competition in the national market for the deployment of ATMs to merchants. This conclusion was informed by market inquiries that suggested that merchants have strong countervailing power in negotiating their supply contracts (primarily due to the number of alternative deployers in the market) and that barriers to entry and expansion in the industry are low.
The ACCC also considered it unlikely that the proposed acquisition would result in a substantial lessening of competition in the market for cash dispensing to consumers through ATMs. This conclusion reflected the number of players in this market (including banks and financial institutions), the demonstrated willingness of customers to manage their transactions to minimise charges, the availability of EFTPOS as a substitute for `convenience? transactions and the low barriers to entry and expansion in the market.
Review timeline
Date
Event
2nd January 2007
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced
19th February 2007
Closing date for submissions from interested parties
21st February 2007
Proposed date for announcement of ACCC's findings.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
