The Australian Consumer and Competition Commission (ACCC) announced that it is approving six banks to take a shareholding in credit reporting agency, Experian Australia Credit Services. The Experian Venture ends the duopoly in consumer credit reporting in Australia and is expected to reduce the cost of credit reports.
ANZ, CBA, Citigroup, GE Capital, NAB and Westpac are the institutions that will each take four per cent, while Experian Group will have a 76 per cent shareholding. The banks that will have minority interests in the proposed joint venture are currently the largest purchasers of credit reporting services and are important providers of a key input, credit information, to Australian credit reporting agencies.
“Following an extensive public review, the ACCC formed the view that the proposed joint venture would be unlikely to substantially lessen competition in any of the markets examined,” ACCC chairman Rod Sims said.
Source: ACCC and Business Review Australia