ACCC proposes cash in transit collaboration
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The news: The competitions regulator has proposed to allow the Australian Banking Association (ABA), its member banks, and other industry participants to collaborate on business continuity if there is disruption or an exit of Armaguard's cash-in-transit services.
The context: The Australian Competition and Consumer Commission (ACCC) has outlined the proposal in a draft determination and is seeking feedback on its draft decision by 14 August.
Linfox Armaguard and Prosegur Australia gained merger authorisation in June 2023 to combine their cash distribution and management and other businesses in Australia, but Armaguard flagged it was struggling to deliver services at the same prices as cash services decline.
The ACCC granted interim authorisation in July for major banks ANZ, Commonwealth Bank, NAB and Westpac, as well as Australia Post, Coles, Wesfarmers and Woolworths to coordinate financial support for up to 12 months to cash-in-transit service Armaguard.
Interim authorisation was granted previously to the parties for similar conduct in March 2024.
What they said: “It is important that the parties continue their discussions so they can resolve or avoid potential impacts to businesses and consumers across Australia should there be any disruption to Armaguard’s services,” ACCC deputy chair Mick Keogh said in a statement.
“We have included conditions on the interim authorisation to ensure the ABA provides regular reports to the ACCC about the discussions and consultation undertaken with industry participants across Australia, including those who are not involved in the Reserve Bank working groups,” Keogh said.
The source: ACCC media release
