Retailers, banks and the ABA to financially support Armaguard

The ACCC has granted interim authorisation for retailers, banks, and the Australian Banking Association (ABA) to financially support Armaguard.

The agreement will see Armaguard receive roughly $50 million in financial assistance over the next 12 months from Australia’s big four banks – ANZ, Commonwealth Bank, NAB, and Westpac – alongside Coles, Wesfarmers, Woolworths, and Australia Post.

It also includes a commitment by the parties to work together to develop an independent pricing mechanism to support a sustainable cash delivery business in the longer term.

Anna Bligh, CEO of the ABA, said this deal will keep cash moving around the country and ensure it remains available to Australians wherever they live.

“The 12 months of financial support also gives Armaguard the necessary time to restructure the business and realise the benefits from their merger with Prosegur. It also allows all parties to work through possible long-term solutions for sustainable cash access into the future.”

The ACCC is also seeking views from interested parties about the operational sustainability and efficiency measures and the independent pricing mechanism aspects of the proposed conduct.

“In assessing those measures, we expect the ABA, major banks and retailers and Armaguard to commit to consulting with other affected parties in a meaningful way so as to ensure the interest of communities across Australia, particularly those in regional and remote areas, are taken into account,” said Mick Keogh, Acting ACCC Chair.

Peter Fox, Executive Chairman of Linfox Armaguard, said the parties recognise that the interdependency of the three elements of revenue support, efficiency and capital support must all be met. 

“No other nation has major banks, retailers and key distribution companies working together to achieve a more efficient Cash-in-Transit industry. Armaguard is also leveraging the expertise of its other shareholder, Prosegur, which is one of the world’s leading cash companies.”

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