The Australian Competition and Consumer Commission’s draft determination also proposes to allow the parties to implement business continuity measures in the event of, or in reasonable anticipation of, a suspension, disruption or exit of Armaguard’s cash-in-transit services.

“It is important that the parties continue their discussions so they can resolve or avoid potential impacts to businesses and consumers across Australia should there be any disruption to Armaguard’s services,” ACCC Deputy Chair Mick Keogh said.

The ACCC has also granted Interim authorisation to the parties while the ACCC continues to assess the ABA’s applications. Interim authorisation was granted previously to the parties for similar conduct in March 2024.

“We have included conditions on the interim authorisation to ensure the ABA provides regular reports to the ACCC about the discussions and consultation undertaken with industry participants across Australia, including those who are not involved in the Reserve Bank working groups,” Keogh said.

“We will carefully review those reports to ensure the interest of all communities in Australia, particularly those in regional and remote areas, are being considered before we make a final determination.”

The ACCC is now seeking submissions on its draft determination.

Further information about the ABA’s application and how to make a submission by 14 August 2024 is available on the ACCC's website.

Background:

Cash-in-transit services involve providing cash transport, management and processing services. These services are provided to banks, retailers and independent ATM operators.

On 13 June 2023, the ACCC granted merger authorisation to Linfox Armaguard and Prosegur Australia to combine their cash distribution, management and other businesses in Australia and accepted a court-enforceable undertaking, which is a condition of the merger authorisation.

On 27 May 2024, the ACCC granted authorisation to the Australian Banking Association, the Customer Owned Banking Association, banks, retailers and other industry participants to allow them to continue developing responses to support the distribution of cash across Australia.

On 3 July 2024, the ACCC granted interim authorisation with conditions to allow the Australian Banking Association, banks and retailers to provide financial contributions to Armaguard. In addition to the financial support, the parties are seeking authorisation to discuss, agree and implement operational sustainability and efficiency measures across services under their respective service agreements and with Armaguard’s cash-in-transit business.