ACCC okays car dealership financing merger

The competition watchdog has approved Westpac's proposed acquisition of the Lloyds car dealership financing services.

The competition watchdog has approved Westpac's proposed $1.45 billion acquisition of some of the assets of Lloyds Banking Group.

The assets are Capital Finance Australia Limited (CFAL) and BOS International Australia (BOSI).

Westpac (through its subsidiary St George) and Lloyds (through CFAL) compete in the supply of floor-plan financing to motor vehicle dealerships, point-of-sale retail finance to customers of motor vehicle dealerships, and equipment finance to a range of businesses.

The Australian Competition and Consumer Commission (ACCC) said on Wednesday that the proposed acquisition by Westpac of the Lloyds assets would be unlikely to result in a substantial lessening of competition.

ACCC Chairman Rod Sims said most motor vehicle dealerships in Australia would still have access to competitive floor-plan finance offerings even if the Westpac and Lloyds services should merge.

Westpac announced the proposed acquisition of CFAL and BOSI in October, after Lloyds decided to focus on its business in the United Kingdom.


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Source: AAP


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