🦘 Big Businesses Exposed For High Prices

G’day everyone!

Here’s what we’ve got in store for you today:

• Former ACCC Chair Digs Into Retailers For Price Gouging

• Woodside Energy Backs Out Of An $80 Million Deal

• Big Moves at NAB

Let’s have a look at the market snapshot before jumping into the news:

Allan Fels Rings the Alarm on Price Gouging in Aussie Big Business

Allan Fels, former ACCC chair, has delivered a stinging report, setting the stage for a potential shake-up in how Australia deals with price gouging. 

Commissioned by the ACTU, Fels's investigation pulls no punches, identifying how a lack of competition has allowed big banks, supermarkets, and energy giants to exploit their market power, exacerbating inflation and squeezing Australian households.

The report, based on input from a whopping 1,000 startup founders, investors, and angels, didn't just crunch numbers; it painted a grim picture of a market dominated by a few at the expense of many.

With no new unicorns in sight and a stark decline in investor participation, the findings are a wake-up call to the government to consider the report's 35 recommendations seriously.

Highlighting the dire need for government intervention, Fels's analysis points to corporate greed and "profit pushing" as culprits behind rising costs, far beyond the justifiable bounds of true inflation.

The investigation spans across sectors—electricity, aviation, banking, and more—uncovering a pattern of exploitative pricing that's been particularly harmful in the post-pandemic landscape.

With the spotlight now on the ACCC to dig deeper into these industries, and calls for policy changes to enhance competition and consumer protection, the report not only criticizes but also offers a roadmap for reform.

From advocating for full bank account portability to exposing unfair pricing practices, Fels's work is a clarion call for fairness in a market that's grown too comfortable in its imbalances.

Woodside Pulls Plug on $80 Billion Santos Merger Dream

In a surprising turn of events, Woodside Energy has abruptly ended merger discussions with Santos, dashing hopes for an $80 billion powerhouse in the global oil and gas sector.

The talks, which emerged in December, promised to unite two of Australia's energy titans into a formidable LNG (liquefied natural gas) entity with a yearly capacity of 16 million tonnes.

Woodside's retreat, announced to the ASX, underscores a cautious stance towards acquisitions, with CEO Meg O'Neill emphasizing the pursuit of shareholder value over expansion for expansion's sake.

This decision marks a significant pivot from their previous aggressive consolidation strategy, demonstrated by Woodside's acquisition of BHP's petroleum business and Santos's merger with Oil Search.

Analysts speculate that concerns over the risks associated with Santos's LNG project in Papua New Guinea—highlighted by the country's political instability and rapid population growth—may have influenced Woodside's cold feet.

Despite the potential for substantial growth in LNG demand from Asia, the mantra seems to be that bigger doesn't always mean more profitable.

This development has stirred the pot, with the Australasian Centre for Corporate Responsibility calling the merger "dead" and advocating for a fresh strategy for both companies.

As the dust settles, Woodside's stock slightly climbed, while Santos's shares took a dive, reflecting market reactions to the unexpected collapse of what could have been a landmark merger in the energy sector.

NAB Ushers in New Era with Andrew Irvine at the Helm

Andrew Irvine is set to take the reins as CEO of NAB, succeeding Ross McEwan and marking a significant leadership transformation. 

Irvine, known for elevating NAB's private and business banking, brings a world of experience and a customer-first ethos from his time at the Bank of Montreal and McKinsey & Company.

NAB chair Philip Chronican praises Irvine as the leader to steer NAB through the evolving financial sector, emphasizing Irvine's digital innovation efforts and his role in enhancing bank performance.

This leadership change signifies NAB's dedication to internal talent development and a continuation of the strategic path laid out by McEwan, focusing on innovation and customer satisfaction.

Irvine's vision for NAB involves furthering its legacy of service excellence and technological integration, aimed at meeting the dynamic needs of its customers.

Under Irvine's guidance, NAB is poised for a future of growth, building on McEwan's efforts to establish a more streamlined, customer-centric bank.

Irvine's leadership is set to infuse NAB with a blend of traditional values and cutting-edge innovation, signaling a promising new chapter for one of Australia's leading banks.

Amazon Prime Expands Rapid Delivery Down Under

Amazon Australia has just announced an exciting expansion of its free Prime one-day delivery service, now including Brisbane, Geelong, Gosford, Newcastle, and Wollongong.

This move significantly broadens the reach of Amazon's rapid delivery offerings, previously limited to major urban centers like Sydney and Melbourne.

With this expansion, a greater number of Australian customers can enjoy the convenience of next-day deliveries at no additional cost, provided they are Amazon Prime subscribers.

Matthew Benham, General Manager of Amazon Australia, highlighted the company's ambitious plans to further extend this service to Adelaide, contingent on the completion of a new fulfilment center in Craigieburn by late 2025.

This development is part of Amazon's substantial investment exceeding $5 billion in 2022 to enhance its Australian distribution network, which now boasts six fulfilment centers.

Prime membership, beyond facilitating free one-day delivery on eligible purchases, also offers access to Amazon Prime Video and Amazon Music, enriching the subscription value at $9.99 per month or $79 annually.

The free, expedited delivery applies to products from retailers participating in Amazon's Fulfilment by Amazon (FBA) service, allowing orders as late as midnight for next-day delivery without a minimum spend requirement, including evening and weekend deliveries.

To support this logistical feat, Amazon employs its Amazon Flex program, leveraging self-employed gig economy delivery drivers to ensure efficient package distribution.

That’s All!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, have an awesome day folks!