ComCom issues draft determination proposing authorisation of NZBA application
The Commerce Commission has released a draft decision proposing to authorise with conditions the New Zealand Banking Association’s application for it, a group of banks and other parties, to collectively negotiate with Evergreen International LLC (Armourguard) over cash-in-transit services.
The proposed arrangements would give the applicant and other parties the ability to collectively bargain for cash-in-transit services provided by Armourguard, engage in discussions and exchange information to support the collective bargaining, enter into collective and/or separate agreements and give effect to any provisions collectively negotiated.
Chair Dr John Small says the Commission has formed the provisional view that the public benefits of the proposed arrangement would outweigh any detriments.
“We consider small benefits would likely arise from the proposed collective bargaining, such as operational efficiencies and more efficient contract terms. While we do not currently consider these to be substantial benefits, we believe they are positive on balance,” Dr Small says.
”Our position has developed since we declined Interim Authorisation in November 2025.
“At that time we were concerned that authorisation could lead to uncertainty and potential deferred investments by Armourguard. However, with further assessment and evidence we now consider these detriments to be unlikely.”
However, the Commission accepts there could be some detriment relating to coordination between the NZBA, the banks and other parties. Therefore, the Commission proposes imposing legal oversight and information-sharing conditions if final authorisation was granted.
A copy of the Commission’s draft determination is available on the case register.
The Commission seeks submissions from interested parties in relation to its draft determination.
Submissions can be sent by email to registrar@comcom.govt.nz with the reference “NZBA Authorisation Application” in the subject line.
Any submissions by interested parties should be received by Friday 10 April, with cross-submissions due by midday on Friday 17 April.
Background
The NZBA is an industry representative organisation that represents and advocates for the interests of the New Zealand banking industry.
Cash-in-transit (CIT) services include the transport, management and processing of bulk cash for banks, the public sector, financial institutions and retail customers, as well as the replenishment of ATMs and bulk cash storage and management.
In 2024, the Commission cleared the acquisition by Evergreen NZ Holdings (trading as Armourguard) of ACM New Zealand Limited (trading as Linfox Armaguard), on the basis that it was very likely that one of Armourguard or Linfox Armaguard would cease to operate without the acquisition. Armourguard is now the only New Zealand supplier of certain cash-in-transit services following its merger with ACM.
Authorisation requirements
The Commission may grant authorisation under section 58 of the Commerce Act 1986 (the Act) for agreements that may breach the Act if it is satisfied that the agreement will in all the circumstances result, or be likely to result, in such a benefit to the public that the conduct should be permitted.
The Commission’s Authorisation Guidelines explain when anti-competitive agreements that may lessen competition or which contain a cartel provision can be authorised under section 58 of the Act, and our process for determining applications.
A copy of the guidelines can be found on the Commission’s website.