The Australian Competition and Consumer Commission (ACCC) said that competition issues have emerged from its initial inquiries into Westpac Banking Corporation's (WBC) proposed $16 billion takeover of St George Bank Limited (SGB). The competition watchdog said it would call for further submissions from the market about the deal.
According to a the statement from the ACCC, it will seek further information on certain competition issues which have arisen from the its market inquiries to date.
"The ACCC has invited further submissions from the market by August 6, ahead of its final decision on August 20."
Westpac said the ACCC's preliminary conclusion was that a merger was unlikely to raise competition concerns in most markets, including personal, business, institutional and corporate banking and insurance.
"Westpac will work closely with the ACCC through to the conclusion of the process and is confident that it will satisfactorily address any remaining issues," the company said in statement.
Westpac added that it believes the merger is a compelling proposition for all stakeholders, particularly customers and shareholders.
Meanwhile, St George said the statement of issues was an important step in the merger process.
"We look forward to working with the ACCC to resolve the issues raised," St George said.
In May, Westpac and St George Bank signed an implementation agreement to pursue a merger after Westpac offered 3.1 shares for each St George share.
At close on Wednesday, Westpac was up $1.44 or 7% at $22.00, while St George was trading $1.80, or more than 6% higher at $28.75.