Customers Limited - proposed acquisition of ATM Solutions Australasia Pty Limited

Acquirer(s)

  • Customers Limited

Target(s)

  • ATM Solutions Australasia Pty Limited

Summary

Customers Limited - proposed acquisition of ATM Solutions

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.

Timeline

DateEvent
02/01/2007ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced
19/02/2007Closing date for submissions from interested parties
21/02/2007Proposed date for announcement of ACCC's findings.