ACCC clears Cuscal's $75m acquisition of Indue
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The news: The competition regulator said it will not oppose payment facilitation supplier Cuscal's proposed $75 million acquisition of Queensland-based rival Indue after finding that the transaction is unlikely to substantially lessen competition.
The context: The Australian Competition and Consumer Commission (ACCC) conducted a review focused on how closely ASX-listed Cuscal and Indue compete in the supply of payment facilitation services, particularly to small and mutual bank customers and fintechs.
The ACCC found that Cuscal and Indue each offer a broader range of payment facilitation services than most of their competitors. However, most customers can source their payment facilitation requirements from multiple suppliers.
The regulator requested feedback about the likely impacts of the proposed acquisition from a range of market participants, including 30 small and mutual banks.
What they said: “While Cuscal and Indue are two of the larger payment facilitation service providers, there remains a range of other suppliers available to customers across the various payment schemes,” said ACCC commissioner Philip Williams.
“Many of the customers most likely to be impacted by the proposed acquisition were in favour of the transaction progressing.
“As Cuscal and Indue support critical business functions for their customers, many of them considered that the proposed acquisition will deliver efficiencies and support continued investment in products and innovation.”
The source: ACCC media release
