ACCC clears mergers: AFG acquisition of Connective and Lumibird acquisition of Ellex both to proceed
Two separate mergers that Frontier Economics advised on have been cleared by the Australian Competition and Consumer Commission (ACCC).
AFG acquisition of Connective
The ACCC will not oppose Australian Finance Group Ltd’s (ASX:AFG) proposed acquisition of Connective Group Pty Ltd (Connective). AFG and Connective are both mortgage aggregators, which act as intermediaries between mortgage brokers and lenders, such as banks.
The ACCC found that the AFG and Connective compete closely with one another and that the proposed acquisition will create the largest mortgage aggregator in Australia. However, the ACCC cleared the proposed acquisition because they found that other established aggregators, including Finsure and the aggregators owned by the National Australia Bank, are likely to continue to provide strong competition. Frontier Economics assisted lawyers for AFG in drafting their submissions to the ACCC.
Lumibird acquisition of Ellex
The ACCC will not oppose Lumibird’s proposed acquisition of the Lasers and Ultrasound Business of Ellex (ASX:ELX). Lumibird and Ellex supply ophthalmic lasers and ultrasound equipment for the diagnosis of eye conditions in Australia and globally. Both companies export products throughout the world and Ellex is the clear market leader in Australia. However, the ACCC found that Lumibird’s acquisition of Ellex would only slightly increase the market share of the combined business and cleared the acquisition. Frontier Economics advised lawyers for Ellex.
Frontier Economics regularly advises clients on competition matters.