MUFG's acquisition of GROW approved

The competition watchdog has given MUFG's takeover of GROW Inc the green light, while tearing down the latter in its determination.

The ACCC said the takeover would be unlikely to have the effect of substantially lessening competition, saying the business was "not an effective and vigorous competitor due to its financial, operational and viability challenges".

"While GROW's presence in the market is valued by customers who consider GROW's technology, innovation and levels of customer service meet their superannuation administration services (SAS) requirements, GROW's competitive significance has been weakened by its financial position, operational challenges and uncertain future viability," the ACCC said.

"Market participants commonly referred to GROW having operational and financial challenges which has made it difficult for GROW to attract new customers as well as investors.

"In particular, market inquiries indicated that larger superannuation funds generally did not consider GROW to be a competitive alternative SAS provider due to concerns regarding its financial stability and depth of experience."

The ACCC directly pointed to prolonged disruption to HESTA members when the fund was transitioning its member services to GROW in June 2025, which led to APRA imposing additional licensing conditions on the fund in December 2025.

The ACCC said through its market inquiries, it found platforms require significant capital and time in the market to maintain and enhance functionality to meet evolving customer needs, and several large funds indicated they did not consider GROW had the capital or the scale to be a reliable provider.

The watchdog said some superannuation funds indicated they had concerns regarding GROW's long-term financial viability, which made it an unattractive service provider when considered in the context of a fund's regulatory obligations.

When considering competition in the market, the ACCC said SS&C and Apex were established alternatives with mature platforms and global capital funding.

MUFG announced in August it had entered into a binding implementation scheme to acquire GROW.