A PYMNTS Company

Australia: Despite alleged ACCC nod, critics fear for post divestiture

 |  January 6, 2014

While the Australian Competition and Consumer Commission has been said to have publically supported the sale of the Australia Post, local post office operators are fearing the repercussions of such a divestiture, reports say, claiming the deal would “devastate” local communities.

Further, franchisees are predicting a “disastrous” result from the Post sale for would-be investors.

The Post first announced plans in 2006 to go private, turning 150 post offices around the nation into franchises. Since, reports say just 29 offices have been turned private, and are likely facing closure.

For those who acquired the franchises, the buyers say the failed plan has financially strained them.

Similarly, local office owners claim any further privatization of the Post would lead to major inconveniences for those in rural towns.

The ACCC reportedly supported such a sale of the Australia Post earlier this week, though has since attempted to quell reports as mere suggestions of such a sale. Following reports of criticism over a Post privatization plan, ACCC head Rod Sims denied any such support for a sell-off.

Full Content: The Sydney Morning Herald

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.