Hongkong and Shanghai Banking Corp Ltd - proposed acquisition of sub-custodian business from Westpac Banking Corporation and Westpac Custodian Nominees Ltd

Acquirer(s)

  • Hongkong and Shanghai Banking Corp Ltd

Target(s)

  • Westpac Banking Corporation and Westpac Custodian Nominees Ltd

Summary

The Hongkong and Shanghai Banking Corp Ltd (HSBC) acquired sub-custodial assets from Westpac Custodian Nominees (WCN) (HSBC's acquisition).

Market definition

The ACCC considered HSBC's acquisition in the context of a national market for domestic custodial services, which includes sub-custodial services.

Competition analysis

The ACCC considered that HSBC faced sufficient competitive constraints post-acquisition and that the acquisition is unlikely to have caused a substantial lessening of competition in the relevant market. This conclusion was informed by the following factors:
- there are a number of substitutes available to customers for domestic custodial services in Australia;
- the acquisition resulted in a small change in market concentration levels in the national market for domestic custodial services; and
- customers for domestic custodial services possess countervailing power when negotiating the terms of a contract for the provision of domestic custodial services.

Timeline

DateEvent
04/10/2006ACCC commences review under the Merger Review Process Guidelines.
25/10/2006Closing date for submissions from interested parties
30/10/2006ACCC announced that it would not oppose the proposed acquisition.