ACCC approves D&D acquisition of Link

Dye and Durham Corporation’s (D&D) court-enforceable undertaking to divest its existing Australian business has been accepted by the Australian Competition and Consumer Commission (ACCC), which led to the acceptance of the acquisition.

Under the terms of the court-enforceable undertaking, D&D is obligated to sell its existing Australian businesses to a purchaser approved by the ACCC.

D&D will acquire a 42.77 per cent shareholding in PEXA Group Ltd through the acquisition of Link Administration Holdings (Link), which it currently owns.

The ACCC’s statement of issues published on 16 June 2022 previously cited significant competition concerns due to D&D’s vertical integration of its information broking services, conveyancing and legal practice management software with PEXA’s Electronic Lodgement Network.

The concerns raised were the result of D&D and PEXA’s alignment allowing for mutual preferential dealing, which could have potentially hindered competition or raised barriers to entry in one or more markets in the conveyancing workflow.

ACCC chair Gina Cass-Gottlieb stated the alignment between D&D and PEXA would have led to “a near monopoly” without the divestment of D&D’s Australian businesses.

“We were conscious of PEXA’s position as the only fully operational Electronic Lodgment Network and the sensitive period of transition underway as interoperability between Electronic Lodgment Network Operators emerges,” Ms Cass-Gottlieb said.

“Therefore, the ACCC has focussed on ensuring that the post-acquisition market structure does not hinder competition over the longer term.”

Ultimately, the ACCC concluded that the proposed acquisition would be unlikely to substantially lessen competition.

Ms Cass-Gottlieb stressed that e-conveyancing is critical to finalising property transactions across Australian states and territories.

“The ACCC supports the development of competition in this important industry,” she said. “A robust and enforceable regulatory regime, led by the Australian Registrars’ National Electronic Conveyancing Council, will be critical to ensuring effective outcomes in this industry.”

Electronic conveyancing disruptor Sympli has welcomed the ACCC’s findings, stating that the decision is a “timely recognition” of the importance of competition in the e-conveyancing industry.

Sympli chief executive Philip Joyce stated the ACCC’s announcement acknowledged that further entrenching PEXA’s monopoly over digital conveyancing and related services through the acquisition by D&D does not represent the best interests of the Australian conveyancing sector.

“Sympli has made it very clear we will not try to muscle in on the services provided by conveyancing practitioners,” Mr Joyce said. 

“Given this finding by the ACCC, PEXA will now find it harder to do so, as they won’t be as strongly incentivized to vertically integrate with Dye & Durham’s LegalTech product and services.”

In August 2022, Link Group’s shareholders voted to approve the D&D takeover following months of negotiations and multiple revised offers.

[RELATED: Link shareholders vote in favour of Dye & Durham acquisition]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.