COMPETITION – AUSTRALIA – REGULATION

ACCC ticks Virgin-Qatar flights plan

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 14 & 19 : 19-Feb-25

The Australian Competition & Consumer Commission has backed Vigin Australia’s proposed alliance with Qatar Airways. The ACCC’s draft determination has concluded amongs other things that the wet-lease agreement will be advantageous to travellers by offering a greater choice of international flights, more convenience and enhanced loyalty program benefits. Qatar Airways will also acquire a 25 per cent stake in Virgin if the deal receives final approval from the ACCC, and ultimately the Foreign Investment Review Board and Treasurer Jim Chalmers.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, QATAR AIRWAYS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY

Dutton’s retail break-up plan ‘madness’: Kennett

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Original article by Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 3-Jul-24

The Coalition proposes to introduce legislation that would force companies in certain sectors to divest assets if they are found to have abused their market power. The divestiture powers would specifically target grocery and hardware retailers with annual turnover of more than $5bn, which would include Coles, Woolworths and Bunnings. The proposed laws have been criticised by former Victorian Liberal premier Jeff Kennett and Business Council of Australia CEO Bran Black. The introduction of divestiture powers was also rejected by former Labor MP Craig Emerson in his recent review of the food and grocery code of conduct.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, BUNNINGS GROUP LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Store sales may save mega deal

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Original article by Tom Richardson, Carrie LaFrenz
The Australian Financial Review – Page: 1 & 18 : 14-Jun-24

The Australian Competition & Consumer Commission has indicated that it has major concerns regarding Chemist Warehouse’s proposed $8.8 billion merger with Sigma Healthcare. The ACCC is particularly worried about the impact on smaller pharmacies that are supplied by Sigma in its role as a wholesaler. In a statement expressing its initial views on the proposed merger, the ACCC indicated that the transaction may lead to increased prices for the goods and services provided by pharmacies, while it could substantially lessen competition in pharmacy retailing. It is possible that Chemist Warehouse may have to sell some of its stores in order to get the ACCC’s approval for the merger.

CORPORATES
CHEMIST WAREHOUSE, SIGMA HEALTHCARE LIMITED – ASX SIG, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Labor turns screw on mergers

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Original article by Ronald Mizen
The Australian Financial Review – Page: 1 & 6 : 10-Apr-24

The federal government will give the Australian Competition & Consumer Commission new powers to block merger deals in reforms to be announced by Treasurer Jim Chalmers today. He contends that the existing competition laws do not adequately address ‘serial acquisitions’ by large companies and acquisitions that entrench the power of market leaders. The reforms will not be as extensive as ACCC chair Gina Cass-Gottlieb wanted. She has pushed for merger partners to be required to satisfy the ACCC that the deal is unlikely to substantially lessen competition. However, the ACCC will have to be reasonably satisfied that a merger is likely to substantially lessen competition in order to block a deal.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Supermarket hit could rock us all

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Original article by Jess Malcolm, Geoff Chambers, Lydia Lynch
The Australian – Page: 4 : 9-Apr-24

The Australian Chamber of Commerce & Industry has expressed reservations about any push to make the food and grocery code of conduct mandatory rather than voluntary. ACCI CEO Andrew McKellar has responded to the release of Craig Emerson’s interim report on his review of the code of conduct by warning that excessive regulation could have "unintended consequences". Amongst other things, Emerson has recommended fining supermarkets up to 10 per cent of their turnover for breaches of the code. Meanwhile, Opposition leader Peter Dutton has described Emerson’s inquiry as a "Mickey Mouse review conducted by a Labor mate"; Emerson is a former federal Labor minister.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Supermarket break-up powers called for

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Original article by Tom McIlroy, Ronald Mizen
The Australian Financial Review – Page: 7 : 19-Mar-24

The Greens want the Australian Competition & Consumer Commission to be given powers to apply for a court order to break up companies that abuse their market power. Greens senator Nick McKim says supermarkets are the focus of the proposed divestiture laws, although he emphasises that the ACCC could also use these powers to target companies in other sectors. Meanwhile, the Australian Retail Association has rejected claims that grocery giants Coles and Woolworths are price-gouging, contending that the duopoly’s sales and costs have increased much faster than their profits over the last five years.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN GREENS, AUSTRALIAN RETAILERS ASSOCIATION, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

ACCC cedes on Suncorp takeover

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Original article by Lucas Baird, James Eyers, Liam Walsh
The Australian Financial Review – Page: 17 : 6-Mar-24

The Australian Competition Tribunal has published its full reasons for approving the ANZ Bank’s $4.9bn deal to acquire the banking arm of Suncorp Group. It concluded amongst other things that it will not result in any substantive change in the structure of the market and is unlikely to lead to increased ‘coordination’ between the nation’s four major banks. The Australian Competition & Consumer Commission has advised that it will not appeal against the tribunal’s ruling. The federal government must also approve the deal on national interest grounds.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

ANZ cleared for $4.9bn Suncorp deal

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Original article by Paulina Duran
The Australian – Page: 15 & 19 : 21-Feb-24

The ANZ Bank will overtake National Australia Bank as the nation’s third-biggest lender after receiving approval for its acquisition of Suncorp Bank. The Australian Competition Tribunal rejected the Australian Competition & Consumer Commission’s assertion that the $4.9bn deal would substantially lessen competition in sectors such as mortgage lending. The tribunal’s deputy president John Halleysays it was of the view that the small increase in ANZ’s market share arising from the merger would not significantly increase the likelihood of ‘co-ordination’ among the major banks in order to limit competition.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Bendigo cool on ANZ plan

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Original article by Lucas Baird
The Australian Financial Review – Page: 18 : 20-Feb-24

The Australian Competition Tribunal’s decision on the ANZ Bank’s bid to acquire Suncorp Group’s banking arm will be announced today. The Australian Competition & Consumer Commission blocked the deal in 2023. Bendigo & Adelaide Bank MD Marnie Baker says the ANZ-Suncorp deal is "not a good transaction for competition or consumers", although she has declined to state whether Bendigo will make an offer for Suncorp Bank if the ANZ deal is rejected. Meanwhile, Bendigo has posted a 2023-24 interim cash profit of $268.2m, which is five per cent lower than previously.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN

ACCC must probe food giants on prices: Fels

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Original article by Ewin Hannan
The Australian – Page: 4 : 23-Jan-24

Former Australian Competition & Consumer Commission chairman Allan Fels has urged the ACCC to conduct a major inquiry into competition and prices in the retail food and grocery industry. Fels recently conducted an ACTU-sponsored inquiry into price gouging, with Fels claiming that supermarkets are not being transparent about the price history of displayed items and their "correlated discounts". While supporting the appointment of former trade minister Craig Emerson to conduct a review of the food and grocery code, Fels says the voluntary code should be made mandatory.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION