(Reuters) – The Australian competition regulator said on Thursday it will not oppose an A$2.47 billion ($1.67 billion) acquisition of Link Administration Holdings by Canada’s Dye & Durham Ltd, if it divests its existing local business.
The Australian Competition & Consumer Commission (ACCC) said the acquisition would be unlikely to “substantially lessen competition”, assuming the Canadian cloud-based software firm divests its existing local businesses, as stated in Dye & Durham’s court-enforceable pledge.
Link shares jumped 8.1% to A$4.66 as of 0015 GMT, their highest since May 11.
The deal will give Dye & Durham (D&D) access to share registry firm Link’s prized 42.8% stake in online property settlement firm PEXA Group Ltd, which was the subject of concern for the regulator.
“The ACCC has focussed on ensuring that the post-acquisition market structure does not hinder competition over the longer term,” ACCC Chair Gina Cass-Gottlieb said. (https://bit.ly/3x1Sc7q)
“Ultimately, the ACCC concluded that the proposed acquisition, taking into consideration the divestiture undertaking, would be unlikely to substantially lessen competition.”
The approval comes on the heels of PEXA Group announcing acquisition of a UK-based remortgage processing firm Optima Legal on expectations that rising interest rates prompt people to switch their lenders in search of better rates.
($1 = 1.4813 Australian dollars)
(Reporting by Sameer Manekar and Jaskiran Singh in Bengaluru; editing by Uttaresh.V and Rashmi Aich)
