ACOC OK with Westpac-St. George proposed union

Australian Banking & Finance, August 15, 2008

The ACCC has given preliminary approval to the Westpac and St George merger proposition before its final decision next week.

"The ACCC considers that competition concerns are unlikely to arise in any of the retail banking markets," the ACCC said in a Statement of Issues release.

It also said competition in corporate banking and insurance markets would be unlikely to suffer if the deal went ahead.

It is an indication it may give the green light to the merger when it announces its final decision on August 20.

"Westpac believes the merger is a compelling proposition for all stakeholders, particularly customers and shareholders," Westpac said of the ACCC commentary.

"Under our proposed operating model, the brands and branches of both organisations will be retained.

"The ACCC's preliminary conclusion is that the proposed merger is unlikely to raise competition concerns in most markets, including personal, business, institutional and corporate banking markets and insurance markets.

"Westpac will work closely with the ACCC through to the conclusion of the process and is confident that it will satisfactorily address any remaining issues."

St.George intends to recommend the offer, pending an independent expert's report concluding it is in the best interests of its shareholders.

St.George shareholders will receive a scheme booklet, including the report, in October.