ACCC greenlights NAB/Challenger deal

by BN07 Oct 2009

NAB has confirmed that the ACCC won't intervene in its proposed acquisition of Challenger's mortgage management business.

Earlier media reports had suggested the competition watchdog may require NAB to hive off one of its aggregators to address market dominance concerns.

But today NAB confirmed that it had received a letter from the ACCC stating that it would not intervene in the proposed acquisition.

NAB Personal Banking Group Executive, Lisa Gray, said: "We welcome the ACCC's decision not to intervene in NAB's acquisition of Challenger's mortgage management business.

"This acquisition represents an important component of NAB Personal Banking's growth strategy. It increases our presence in the important broker distribution segment and we will have the capacity to grow and support CMM's broker networks well into the future," Gray said.

Subject to all regulatory and other conditions being satisfied, NAB expects the acquisition to be completed by the end of the year.

Following completion of the transaction, CMM will be rebranded and run as a separate entity within NAB Personal Banking's broker division.

Related stories:

ACCC may block NAB/ Challenger deal - Key parts of NAB's proposed $385 million buyout of Challenger's mortgage management businesses may be blocked by the competition regulator on market dominance concerns.