The announcement,which followed a report inTheAustralian Financial Review,said Armaguard would need to hit monthly performance indicators to receive the payments. The parties will also work together on developing an “independent pricing mechanism” aimed at supporting sustainable cash delivery services in the longer term.
Australian Banking Association chief executive Anna Bligh said the agreement would shore up cash distribution for the next year,while giving Armaguard time to lock in the benefits of a merger.
“This deal will keep cash moving around the country and ensure it remains available to Australians wherever they live,” Bligh said.
Last year,Armaguard was given the green light to merge with Prosegur,even though it would create a near monopoly with market share of about 90 per cent in the cash-in-transit sector.
Bligh said Armaguard would have time to restructure the business after the Prosegur merger,and Monday’s agreement would also give the parties time to “work through possible long-term solutions for sustainable cash access into the future”.