NAB’s $220 million acquisition of neobank 86 400 has been greenlit by the Australian Competition and Consumer Commission without conditions or fears about reduced competition.
The ACCC said it had closely examined the proposed takeover and consulted with a range of stakeholders including non-bank lenders, fintechs, mortgage brokers and industry and consumer bodies.
Most interested parties raised no or limited concerns, the ACCC said.
ACCC chair Rod Sims said in a statement on Tuesday that while 86 400 was innovative, there were “a number of other businesses” with similar business models that could replace it in the market.
“Whilst in this instance we found that the removal of 86 400 is unlikely to substantially lessen competition in the market, we will continue to closely scrutinise proposed acquisitions of emerging competitors, particularly by major banks.”
Mr Sims said previous ACCC inquiries into the home loan market found competition between the big four banks “has been muted at best”.
“They tend to accommodate each other rather than competing strongly to win market share. Therefore any acquisition of a rival or potential rival by any of the big four needs to be very closely considered.”
Ubank, the NAB subsidiary that made the bid to acquire 86 400 in January, welcomed the decision.
“For UBank, the proposed acquisition is part of our commitment to delivering exceptional banking services and experiences to our customers,” Ubank chief executive Philippa Watson said in a statement on Tuesday.
NAB started with an 18% stake in 86 400 that it had picked up in an earlier funding round.
The deal remains subject to further regulatory and Federal Court approvals
NAB shares eased 0.8% to $25.91.
