ACCC approves Westpac's takeover of St George 24 July 2008
The ACCC effectively approved the merger of Westpac and St George banks yesterday by raising very few competition issues in relation to the proposed deal. The competition regulator said competition issues were not likely to arise in relation to retail banking, corporate and institutional banking, wholesale funds management, financial advisory services and non-advisory broking. At a national level the combined entity would have a market share of 19 to 25 per cent across the various segments. The ACCC raised only one area of concern about the proposed merger of Westpac and St George. It is uncertain about the impact on competition of the combination of the banks wealth management platforms, BT Wrap and Asgard. BT Wrap and Asgard are two of the three biggest wrap services in the wealth management market. The ACCC will make further inquiries on this matter and will seek further information from market participants regarding the competitiveness of the various providers of wrap platforms. The ACCC expects to publish a final view by August 20. The two banks aim to formally merge in December.
