Armaguard/Prosegur Merger Goes Ahead

The Australian Competition and Consumer Commission (ACCC) has finally approved the merger of Australia’s two largest cash in transit companies – Linfox Armaguard and Prosegur Australia. The merger will create a single cash logistics provider, operating under the Armaguard name, with an estimated market share of more than 90%.

The complex nine-month long review saw the competition authority gather more than 80 submissions, 13 witness statements and four expert reports, forcing them to extend their decision-making deadline several times.

Industry in decline, cash remains crucial

The review concluded that the Australian CIT industry is in structural decline due to the decreasing use of cash, but noted that it continues to be crucial to some parts of the economy.

Commenting on the decision, ACCC Commissioner Liza Carver said: ‘we accepted that, without the proposed merger, it was highly probable either Armaguard or Prosegur would withdraw from the declining cash-in-transit market in the near future and this exit could occur very quickly. We were concerned that the rapid exit by either of these two major suppliers could cause significant disruption, including by reducing the availability of cash to their customers, and therefore the public.’