The major bank was aiming to sell a 89 per cent stake in Westpac PNG to Kina Securities, however on Tuesday it was announced that the ICCC had rejected the move.
In a statement, Kina Securities said the ICCC is not satisfied that the acquisition “will not have, or will not be likely to have, the effect of substantially lessening competition in the PNG markets” and “will result, or will be likely to result, in such a benefit to the public that it should be authorized”.
“Kina is assessing the implications of the ICCC’s decision not to grant authorization to the acquisition and is considering its options,” the statement read.
Westpac said in a separate statement: “Westpac acknowledges the ICCC’s determination and will continue to operate these businesses while it reviews the impact on the sale to Kina Bank.”
The deal was initially rejected by the PNG regulator in July, while talks continued last month.
At the time, Kina managing director and chief executive Greg Pawson said the acquisition strategy would see the group rebrand Westpac’s Pacific businesses, including Westpac PNG and Westpac Fiji, to East West Commercial Bank – a new brand that would compete directly with Kina in the local market.
