The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose the acquisition of Count Financial by the Commonwealth Bank of Australia (CBA).
… there is unlikely to be a substantial lessening of competition in any relevant market
“The ACCC is satisfied that there is unlikely to be a substantial lessening of competition in any relevant market as a result of this proposed acquisition,” ACCC chairman Rod Sims said.
“The ACCC noted that the acquisition would increase CBA’s presence in the supply of financial planning services and mortgage referral services. This could potentially have reduced competition in the supply of these services and increased the ability of CBA to direct business to its upstream investment and mortgage related products. However, the ACCC was satisfied that CBA would continue to be constrained by a number of other significant financial planning dealer groups, mortgage broking firms and investment product providers,” Mr Sims added.
CBA announced its intention to purchase Count in August this year (see: CBA Buys Count). Count’s directors unanimously recommended that shareholders vote in favour of the acquisition at a meeting to be held next week.
CBA will pay $1.40 per share to acquire the accountant-based adviser group, which will increase the number of advisers operating under CBA-owned distribution from approximately 1,220 to over 1,850. CBA says this will rank it second largest distribution network in Australia by adviser numbers.
