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Competition watchdog the ACCC has given the go ahead to the Commonwealth Bank’s $2.1 billion acquisition of BankWest but emphasised that this should not be seen as a “green light” for other regional bank acquisitions by the big four.
In a statement released yesterday ACCC chairman Graeme Samuel said CBA’s acquisition of BankWest was unlikely to substantially lessen competition under Section 50 of the Trade Practices Act 1974.
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This conclusion was drawn from evidence that BankWest would have been unlikely to continue as the “aggressive competitor” it previously was and that no other buyer would be in the position to continue with BankWest’s expansion plans.
“In the absence of the global financial crisis and the funding difficulties faced by BankWest’s overseas parent company, the ACCC’s conclusion may well have been different,” Mr Samuel said.
The acquisition now remains subject to final approval by the federal treasurer.
