Westpac Granted Approval to Increase Stake in Westpac PNG
The Independent Consumer and Competition Commission (ICCC) has cleared Westpac Banking Corporation (Westpac) to acquire an additional 8.75 percent of the issued share capital in Westpac PNG Limited, currently held by Nambawan Super Limited (NSL), as part of a proposed acquisition.
ICCC Commissioner and Chief Executive Officer, Paulus Ain, stated that the decision, made on August 28, 2024, was based on the assessment that the acquisition would not substantially lessen competition in any market within Papua New Guinea. "The ICCC's determination was based on its assessment and considerations that the Proposed Acquisition by Westpac would not have, or would not be likely to have the effect of substantially lessening competition in any market(s) in PNG," said Ain.
The acquisition does not involve the consolidation of two competing firms but is an internal transaction between shareholders of Westpac PNG, with Westpac, the controlling shareholder, increasing its stake by acquiring NSL's minority shareholding. As such, the market structure and competition levels in PNG's banking and financial services sector will remain unchanged after the acquisition.
Westpac’s controlling interest in Westpac PNG will rise from 89.9 percent to 98.63 percent following the transaction. The ICCC noted that this increase would not significantly enhance Westpac PNG's market control or alter competition in any relevant market in the country.
"While the ICCC appreciates that the parties involved provide banking and financial services, there is no specific market in the proposed acquisition where competition is likely to be harmed," Ain added.
The ICCC has therefore granted clearance for the acquisition to proceed. The Commission's determination is available on the ICCC website or as a hard copy from the ICCC Head Office at Boroko Post Office Building.
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