Reuters Australia
Regulator seeks more comment on Westpac/St George deal
Wednesday July 23, 06:35 PM
(Adds details)
SYDNEY, July 23 (Reuters) - Australia's competition regulator said it was seeking more comment on Westpac Banking Corp's (ASX: WBC.ax) planned A$16.3 billion ($15.8 billion) takeover of rival St George Bank Ltd (ASX: SGB.ax) , after initial inquiries raised concerns on wealth management.
The Australian Competition and Consumer Commission (ACCC) said on Wednesday it was looking for more comment by Aug. 6, after market participants raised concerns about a merger of the two group's wealth management platforms: Westpac's BT and St George's Asgard.
The ACCC said the proposed deal was unlikely to raise concerns in most markets, including retail, institutions and insurance.
In response to the statement, Westpac said it was confident it would satisfactorily address any remaining issues.
Westpac, Australia's fourth-biggest lender, has offered 1.31 of its shares for every St George share. The commission has deferred its final decision until Aug. 20.
St George Bank shareholders are set to vote on the deal early in November.
Westpac shares rose 7 percent to A$22.00 at 0628 GMT, while St George shares gained 6.7 percent at A$28.75, outpacing a 5.5 percent gain in the financials sub-index .AXFJ. ($1=A$1.03) (Reporting by Denny Thomas and Mette Fraende; Editing by James Thornhill)
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