26 Nov 2011, Posted by admin in Business,News, 0 Comments

CBA’s takeover gets approval from ACCC

We felt this article was important information given the impact a CBA acquisition can have on the existing market. Not entirely sure ACCC understood the full impact of CBA’s takeover. 

Reported byAAP on finance.ninemsn.com.au

The competition watchdog has approved Commonwealth Bank of Australia’s acquisition of Count Financial.

Australian Competition and Consumer Commission (ACCC) chairman Rod Sims said there was unlikely to be a substantial lessening of competition in any relevant market as a result of the proposed acquisition.

CBA offered $373 million for the financial planning accountants network in August, and views the acquisition as complementary to its Colonial First State advice businesses.

Mr Sims said the acquisition would increase CBA’s presence in the supply of financial planning services and mortgage referral services.

But the ACCC was satisfied the bank would continue to be constrained by a number of other significant financial planning dealer groups, mortgage broking firms and investment product providers, Mr Sims said.