Westpac has attempted to reassure shareholders that its proposed acquisition of St George Bank remains a "compelling proposition", as the Australian Competition and Consumer Commission (ACCC) moves into the next phase of its merger inquiry.
The ACCC announced yesterday it has completed a statement of issues on Westpac's proposed acquisition of St George Bank.
The statement calls for more information on certain competition issues following market inquiries made by the ACCC.
"The proposal to merge with St George is a significant and important market development and Westpac recognises the ACCC's responsibilities in undertaking a thorough market investigation. Westpac believes the merger is a compelling proposition for all stakeholders, particularly customers and shareholders," a Westpac statement to the Australian Securities Exchange said.
"Under our proposed operating model, the brands and branches of both organisations will be retained.
"The ACCC's preliminary conclusion is that the proposed merger is unlikely to raise competition concerns in most markets, including personal, business, institutional and corporate banking markets and insurance markets."
As part of its inquiry, the ACCC has called for further submissions from the market with a deadline of August 6, 2008.
The commission will reach its final decision on August 20, 2008.
