Retailers, banks agree on deal to rescue Armaguard’s cash-in-transit business
Retailers and banks have agreed to provide Armaguard with $50 million worth of financial assistance for its cash-in-transit business over the next 12 months.
The agreement is subject to meeting monthly key performance indicators and other conditions, according to the Australian Banking Association (ABA). The parties will also work together to develop an independent pricing mechanism to support a sustainable cash delivery business in the longer term.
“This deal will keep cash moving around the country and ensure it remains available to Australians wherever they live,” said ABA CEO Anna Bligh.
The financial support will allow Armaguard to restructure the business and realise the benefits from their merger with Prosegur, Bligh added.
The group of funders includes ANZ, Australia Post, Coles, Commonwealth Bank of Australia, National Australia Bank, Wesfarmers, Westpac and Woolworths Group.
The agreement has been submitted to the Australian Competition and Consumer Commission (ACCC) for approval.
- Further reading: ACCC allows talks among retailers, others over cash transit plight
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