The Australian Competition and Consumer Commission will not oppose the National Australia Bank Limited's proposed acquisition of 25 per cent equity in Cash Services Australia Pty Limited following the offer of court-enforceable undertakings* by CSA.
CSA is a joint venture between ANZ, CBA and Westpac, established in 2001 for the purposes of jointly acquiring and re-supplying armoured carrier services and the operation of a cash exchange.
In consulting with the market on the proposed acquisition, market participants raised concerns relating to:
- the increased likelihood that NAB would acquire its armoured carrier services through CSA, which may impact on the competitiveness of the market for armoured carrier services
- CSA's enhanced ability to control a wholesale cash pool, and that
- CSA's shareholder banks would have access to competitively sensitive information.
CSA advised that it has no plans to trade wholesale cash. NAB has also advised the ACCC that it is not currently intending to acquire armoured carrier services from CSA and has committed to give the ACCC six weeks advance notice of any change in this intention.
Following consultation with market participants, the ACCC considers that concerns have been addressed by the undertakings offered by CSA.
ACCC Chairman, Mr Graeme Samuel said no views have yet been formed by the ACCC on any potential customer arrangement, although the ACCC would closely examine such an arrangement should it be proposed.
The undertaking and reasons for this decision will be posted on the ACCC website in due course.