NDB wants to buy Westpac
THE National Development Bank (NDB) wants to buy Westpac Bank, making its long term plan of going commercial a reality, according to chairman Michael Mell.
Mell, in a press conference in Port Moresby yesterday, said there was no room for a monopoly in the banking sector and wanted Westpac to consider its offer as well.
“I have set up a committee from both NDB and People’s Micro Bank. We have been working tirelessly in the background for the last four months,” he said.
“We were quietly preparing a bid for it.
“I was collecting the information about the sale of Westpac and then looking at what kind of money that we need to raise to buy the bank but then this announcement came.
“The deal between the two banks has been done at their level.
“I have tried to reach out to them and could not.
“In PNG, we need not monolpolise the banking system because that is going to kill us.
“If there are two existing banks, I want to make an offer to Westpac, if NDB can purchase Westpac Bank.
“We should have three banks for customers to choose from.
“This is a concern to see Westpac Bank sold to another commercial bank is limiting the choice for PNG businessmen and women to expand, to borrow to grow their businesses.
“On behalf of the National Development Bank, I want to make an offer through our business arm which is the People’s Micro Bank, a semi-commercial bank, to Westpac.
“I would like to be given that opportunity so that I can buy that commercial bank for the people of PNG, which will become NDB’s commercial bank while NDB remains as an small to medium enterprises bank.”
Mell said NDB’s offer needed to be considered.
“The banking industry in PNG will no longer be a free market place.
“I see this as a monopoly that is going to kill businesses in Papua New Guinea.”
He called on the Independent Consumer and Competition Commission and the Internal Revenue Commission to look into the deal and vet it properly, taking into account the potential negative impacts on the country’s banking industry and the people.
11 comments
I would like to say that this is the right call and long overdue. Kina is new while NDB and micro have been here long term. The National Government should and must support Mr.Mell’ s call and make NDB the commercial retail bank via Micro Bank.The
The Government must allow more banks to operate here and regulate that industry where they can go out to all the provinces and districts and provide the banking services.
Monopoly is going to kill the customers. The Government and authorities need to step in and ensure there is another two more commercial banks in the country to provide competition with Kina and BSP so the Banks are able to provide the best products for PNG people at affordable prices and to stimulate economic growth in the Country..
Currently, the bank products are tailored towards fat profits and greed for shareholders benefits.
PNGians must also not forget the fact that the Kina Bank is majority owned by Asians, especially Malaysians.
The government of PNG needs to take this call seriously and ensure banking services are not monopolized. Kina Bank buying ANZ and Westpac will reduce the competition to just two players in PNG, BSP and Kina.
Kina Bank should concentrate on acquiring ANZ and allow NDB to bid for Westpac purchase.
Kina bank refused to accept my personal aaccount and closed it. Reason because I was a leader of a political party and so they refused to accept my sms banking and other services provided. NDB I support you for your effort to buy.
I agree to this. NDB has been here in PNG long enough than Kina bank.
NDB must buy Westpac.
My goodness, if what Canisius’ saying is correct, then I urge all Papua New Guineans to support the call made by Mr Mell.
This is our country and we must support our own little peoples bank.
From the general information available, I agree that Kina’s purchase of Westpac may create a duopoly in the market and limit options in the retail and personal banking space. But I must acknowledge the impressive development by the bank in a short period of time. They’ve transitioned their business very well from the Esi Loan days to the second biggest bank in PNG. They weren’t in the mix 5 years ago. The future looks good for them and their customers.
While NDB’s proposal seems like a great proposal on the surface, it needs to be looked into carefully. The bank doesn’t have a good history: its been open to political interference, never been profitable and dependent on govt funding. It hasn’t proven itself in its current shape, how does one expect it to perform as a larger entity? Worst case scenario, the proposed acquisition may end up being like the debt ridden Telikom, only worse. Costing the country more.
Westpac should explore other players in the market like Credit Corp, TISA or similar, to see if they have the appetite and resources to acquire Westpac. Who knows maybe Nambawan Super, Nasfund or NCSL might be interested!
As a consumer I want superior products and service for my hard earned money. I am not willing to settle for a mediocre bank. I also want a bank that is willing to grow its footprint across the country, create more local jobs and enlist on the local stock exchange.
In terms of the best parties, I have confidence in the ICCC’s capabilities to safeguard the market.
If there are no suiters, I would keep the status quo. Why fix it when it aint broken, Westpac has served reasonably me well for 20 years!
Affordability in banking services is the ultimate goal for PNG government. Owning a bank by NDB would allow our government to be an active team player within the banking industry, reduce monopolistic situations, enhance competition and affordability for indegenious PNGeans to grow their MSMEs and or ease of doing businesses generally. That’s an excellent proposition by NDB.
The government should intervene and assist NDB to reduce monopoly. Take Back PNG thats the way to go..
Over to you PMJM
Before NDB think about buying out Westpac somebody must give a thought about why the sudden announcement to sell. Westpac is selling in a matter of months just after ANZ sold to Kina. Why is ANZ and Westpac exiting the PNG market which they have enjoyed for many years ? Something does not look right and am forced to think along the political climate. Maybe ANZ and Westpac is seeing something in the political situation that may affect their operation in PNG in the long term, maybe there are other reasons but for two banking institutions to sell their business within months of each other smells foul.
Firstly that looks good, a great idea to control monopoly.
In addition it would provide to majority PNGans some products that will help and assist us like those days of PNGBC…… Banking was made simple and easy for average PNGans.
Let Best buyers like Nambawan Super, Nasfund, Credit Cooperation etc, should be given the opportunity that is there now.
NDB + PNGBC = GOVERNMENT, Too much political interference resulting in so many unprofitable STATUTORY bodies in PNG.
What formula has Mr. Mell got that will make NDB and it’s subsidiaries to become a viable accquisition. Why did the GOVERNMENT sell PNGBC in the first place?
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