ACCC does not oppose AFG-Connective mortgage aggregator deal
The Australian Competition & Consumer Commission (ACCC) will not oppose Australian Finance Group Ltd's proposed acquisition of Connective Group Pty Ltd.
As mortgage aggregators, both AFG and Connective act as intermediaries between mortgage brokers and lenders, such as banks.
In their statement of issues in February, the ACCC identified a number of preliminary concerns with the proposed acquisition that will create the largest mortgage aggregator in Australia.
After completing a second round of enquiries, ACCC chair Rod Sims says: "After our extensive public review of the acquisition and our consultation with a wide range of interested parties, we believe the combined AFG-Connective is likely to continue to face robust competition.”
“Mortgage brokers will still have a range of other aggregators, should they become dissatisfied with the combined AFG-Connective’s pricing or service. Lenders will likewise have a range of aggregators through which they can access potential consumers,” Mr Sims said.
The combined AFG-Connective is likely to have the incentive to retain lenders on their panel who are popular with consumers to attract brokers.
The ACCC ultimately found that substantial lessening of competition was not likely.
Other established aggregators, including Finsure and the aggregators owned by the National Australia Bank, are likely to continue to provide strong competition.
Further information is available at Australian Finance Group Ltd - Connective Group Pty Ltd.
