UBS AG - proposed acquisition of ABN AMRO Bank NV's futures brokering business.

Summary

UBS AG - proposed acquisition of ABN AMRO Bank NV's futures brokering business.

Market definition

The ACCC assessed the proposed acquisition under the narrowest possible market, being the market for derivatives trading or clearing on the Sydney Futures Exchange.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to substantially lessen competition in the market for derivatives trading or clearing on the Sydney Futures Exchange (SFE) because trading and clearing participants on the SFE were likely to provide real constraints to the merged entity.
The ACCC also found that there were relatively low barriers to entry and expansion because, in particular, overseas-based brokers were likely to have the resources to enter the market.