AFG blasts competitor 'for sale' rumours

by Ben Abbott14 Mar 2012

AFG has accused aggregator competitors of spreading false rumours that the business is for sale.

Following similar denials in early 2010, AFG managing director Brett McKeon issued a statement yesterday claiming rumours of an impending sale of the business were false.

Speaking with Australian BrokerNews, McKeon laid the blame for the rumours at the feet of unnamed aggregator competitors, which he accused at 'grasping at straws' in competition with AFG.

"I've got people that we do business with, and people who we are tendering for accounts with saying to me that they are hearing rumours in the marketplace, so I thought I'd better quash them and say they are completely untrue," McKeon said.

McKeon said of the remaining independent aggregators in the market, there were at least "one or two" for sale, and that these could be the groups responsible for injecting rumours into the market.

McKeon said AFG had been successful in winning "every single one" of a number of high profile corporate account tenders over the past 12 to 18 months, in competition with other aggregators.

Rumours surrounding AFG have included a sale to CBA, to rival institution ANZ, and occasionally claims that competitors were set to swallow the larger aggregator.

AFG previously denied it was for sale in April 2010, after rumours at the time indicated a sale was imminent. McKeon said he was likely to have to issue a similar statement in "another year's time".

AFG currently services a network of over 1850 brokers, and is targeting growth of 250 this year. During the NCCP transition, AFG reduced numbers back to 1700, from as high as 2,500.

Related stories:

AFG not for sale: Hewitt



  • by Regional Broker 14/03/2012 9:32:49 AM

    Let's hope that AFG remains independant and is not overun by one of the majors.!! Long live the independant aggregator !!

  • by oldBroker 14/03/2012 9:43:45 AM

    Have no idea what the issue is here. Every business is for sale and every business owner should be looking for an exit strategy.

  • by sydney broker 14/03/2012 12:39:30 PM

    Let's not forget that AFG is owned 10% through Macquarie Bank!