ACCC to probe CBA's Aussie Home Loans purchase
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The corporate watchdog says it is investigating the Commonwealth Bank's (CBA) purchase of a third of the mortgage company Aussie Home Loans.
The CBA says it has bought part of the lender to increase its exposure to the strong home loan industry.
The chairman of the Australian Competition and Consumer Commission (ACCC), Graeme Samuel, says the size of the purchase has attracted the commission's attention.
"We're constantly on the watch for any potential mergers that have the prospect or the possibility of lessening competition," he said.
"But I wouldn't want to comment at this particular point as to whether this merger has has the possibility of lessening competition, we'll just subject it to normal inquiries and the normal investigation."
Mr Samuel says the ACCC is obliged to investigate the deal under the Trade Practices Act.
"Very often claims are being made that independence will be preserved but the financial incentives and other commercial incentives might tend to a different position," he said.
"So we'll investigate that to really determine what the reality is, that is, what is the commercial reality that would flow from acquisitions of this nature."
