CBA sitting pretty as ACCC announces no opposition to Aussie take over

by Mackenzie McCarty22 Mar 2013

Yesterday’s ACCC announcement that it would not oppose CBA’s proposed acquisition of the remaining 67% of the issued capital in Aussie Home Loans has one lender’s CEO claiming the outcome underlines a major lack of transparency in the banking sector.

The ACCC says Aussie’s franchise network of approximately 750 brokers have access to a ‘range’ of lenders’ mortgage products, and receive the benefit of Aussie’s brand recognition as well as administrative and technical support services.

ACCC chairman, Rod Sims, says these brokers may supply white label products, financed by a third party lender such as CBA, but rebranded as own-brand home loan products of Aussie Home Loans.

"In reaching its view, the ACCC took into account the competitive constraint arising from the presence of a number of alternative suppliers of home loan products and mortgage distribution services.”

While Aussie franchisee brokers will still wish to offer home loans from a range of lenders, CBA is likely to have the ability and incentive to increase the volume of, for example, white label home loan products supplied through the Aussie network – and this doesn’t sit well with Heritage Bank CEO, John Minz.


read more > 1 2

COMMENTS

  • by Wilko 22/03/2013 10:10:35 AM

    Minz is just scared that competition will get even more intense.

    I think Aussie will have some very competitive product in the future and this probably scares the crap out of him.

    Good decision by the ACCC and shows the worth of the MB industry to the rest of the financial services industry.

  • by Country Broker 22/03/2013 11:22:27 AM

    This decision shows the ACCC have no real power or they will not use it in the national intertest or the best interest of the public in mind .
    The comments about there is no doubt tghe CBA will have an influence is so telling and yet nothing but an approval, just amazing !

  • by Tony O 22/03/2013 12:13:54 PM

    They say only 6% of Brokers in the market however, didn't say what percentage of the market Aussie has or business they write is !!!!
    Also, what sort of preferential treatment will they get in processing compared to the other 94% of brokers !!!
    Thought John was going to "stick it to the big Banks" !!! Think maybe he has "stuck it" to everyone else, but CBA !!! Including those that go to him to encourage the competition.
    ACCC need to have a good look at themselves and their decision.