connectfinancial and islandstate - proposed merger of credit union operations

Status: 
Completed
Outcome: 
Not opposed on 13 February 2007
Reference number: 
27150
Industry: 
Banking and Finance
Commenced: 
31 January 2007
Total review days: 
10 days

Acquirer(s)

  • connectfinancial

Target(s)

  • islandstate

Summary

connectfinancial and islandstate propose to merger their credit union operations in Tasmania.

Market definition

The ACCC considered the proposed merger in the context of the market for the provision of financial services in Tasmania.

Competition analysis

The ACCC considered it unlikely that the proposed merger would lead to a substantial lessening of competition in the relevant market.

The ACCC noted that while the proposed merger would involve the amalgamation of the two largest credit unions in Tasmania, the presence of a large number of competitors (particularly the major banks) is likely to provide a sufficient constraint on the merged entity to prevent any attempt to increase prices or reduce service levels.

Timeline

DateEvent
31/01/2007ACCC commenced review under the Merger Review Process Guidelines.
02/02/2007Market inquiries commenced.
09/02/2007Closing date for submissions from interested parties.
13/02/2007ACCC announced it would not oppose the proposed acquisition.