Kina Securities Ltd (KSL), through Kina Bank, will be challenging the Independent Consumer and Competition Commission (ICCC) decision in its Draft Determination on its proposed decline of authorization for Kina Bank to acquire Westpac PNG’s shares.
Kina Bank’s Chief Executive Officer (CEO) Mr. Greg Pawson, said the draft determination, which was issued by the ICCC late last week, is the first stage in a
three-stage process and is largely based on feedback and objections from several organizations invited by the ICCC to respond.
“Stage two of the process is a consultation session scheduled for the 11th of August.
Stage three is a final submission by Westpac and KSL due 20th August. We then anticipate a final determination by the ICCC at some point in September,” said Mr. Pawson.
“We will be challenging the ICCC draft determination vehemently.
We think we have a very strong proposition to increase competition and at the same time strengthen the financial services sector in PNG.”
On 17th March 2021, KSL applied to the ICCC seeking authorization for its proposal to acquire 89.91% shares in Westpac PNG.
The ICCC conducted public consultations on this proposed acquisition before completing its assessment.
Meanwhile, ICCC Commissioner and Chief Executive Officer (CEO), Mr. Paulus Ain, explained in a statement that after taking into consideration KSL’s authorization application and submission, including comments from relevant stakeholders and available market information, the ICCC proposed to decline authorization for the proposed acquisition.
“For the reasons outlined in its draft determination, the ICCC is not satisfied that this proposed acquisition would not have, and would not be likely to have, the effect of substantially lessening of competition in the relevant markets; and is not satisfied that the proposed acquisition will result, or will be likely to result, in such a benefit to the public that it should be authorized,” Mr. Ain said.
Mr. Ain further added that the parties and other stakeholders have been given the opportunity to comment on the Draft Determination through a conference to be held on the 11th of August.