Interim approval for a multimillion-dollar deal ensuring cash transport across Australia has been granted by the Consumer Watchdog.

The big four banks of Australia—ANZ, Commonwealth Bank, NAB, and Westpac—have collaborated with four major retailers—Wesfarmers, Coles, Woolworths, and Australia Post—to support the business operations of the cash transport distributor. A $50 million deal, which was finalised on 24 June , will be effective for 12 months.

The Australian Consumer and Competition Commission authorised the Australian Banking Association, banks, and retailers to financially contribute to the cash-in-transit business on an interim basis.

The ACCC has given approval solely for the financial aspect of the deal, as the ABA, banks, and retailers aim to evaluate the “operational sustainability and efficiency measures across services under their respective service agreements and with Armaguard’s cash-in-transit business.”.

In terms of their cash services agreements with Armaguard, the parties are also attempting to formulate an independent pricing mechanism, but without implementing it.

“At this time, we have only provided interim authorisation on the financial support aspect of this package,” acting ACCC chair Mick Keogh said.

“We consider that the financial assistance to Armaguard increases the likelihood of a more sustainable supply of wholesale cash distribution services as well as access to cash by businesses and members of the public across Australia.”

The ACCC is actively soliciting submissions regarding aspects of operational sustainability, efficiency measures, and the independent pricing mechanism by July 24.

“In assessing those measures, we expect the ABA, major banks and retailers and Armaguard to commit to consulting with other affected parties in a meaningful way so as to ensure the interest of communities across Australia, particularly those in regional and remote areas, are taken into account,” Keogh said.

“We expect this would include affected parties being consulted and provided with transparency about any proposed measures before they are implemented.”

Linfox, the transport and logistics behemoth owned by Lindsay Fox and the parent company of Armaguard, initially turned down a $26 million emergency funding offer in March from the ABA, banks, and retailers, only to accept the deal on 24 June. Anna Bligh, ABA’s chief executive, stated that the agreement underscored the persistent challenges confronting the sustainability of cash-in-transit services.

“This deal will keep cash moving around the country and ensure it remains available to Australians wherever they live,” she said.

“The 12 months of financial support also gives Armaguard the necessary time to restructure the business and realise the benefits from their merger with Prosegur.

“It also allows all parties to work through possible long-term solutions for sustainable cash access into the future.

Editors Publicspectrum

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