Link’s bid to acquire Pillar scrutinised by ACCC

Company News

by David Chau

The ACCC is concerned about Link Administration Holdings Ltd’s (ASX:LNK) potential acquisition of Pillar, the state-owned corporation which administers government employee superannuation funds.

The NSW government wants to privatise Pillar, and Link is one of the parties who have shown interest in buying it.

ACCC Chairman, Rod Sim, thinks that the potential acquisition is likely to substantially lessen competition in the supply of superannuation administration services. Mr Sim’s reasoning is that the acquisition would entrench Link’s dominant position, resulting in lower service levels or higher prices, which will be ultimately passed onto members.

The ACCC is inviting further submissions from interested parties until 28 October, and expects to make a final decision by 15 December.

Link reported a net profit of $42.5 million at 30 June 2016.

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