The NSW government’s planned $100 million-plus privatisation of superannuation management platform Pillar has hit a snag after the competition watchdog said a sale to one frontrunner, ASX-listed Link Group, would reduce competition.
In August, Link revealed that the Australian Competition and Consumer Commission was taking a look at its eligibility to buy Pillar. On Thursday, the ACCC said in a statement of issues that Link and Pillar were the only two providers that supplied administration services to large superannuation funds.
“The ACCC is concerned that the possible acquisition is likely to substantially lessen competition in the supply of superannuation administration services by entrenching Link’s dominant position, resulting in lower service levels or higher prices, which will ultimately be passed on to fund members,” ACCC chairman Rod Sims said in a statement.
A sale to Link “would also remove the potential for an alternative owner to further invest in Pillar’s offering and make it an even stronger competitor to Link in the future.”
Pillar administers more than $100 billion in super and pension accounts belonging to about 1.1 million members.
Full Content: Financial Review
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