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New Report Says $10.7m Of $14m Saving "Not Achievable"
After considering last month's Ernst & Young findings, the AJC & STC "jointly commissioned a study by LEK Consulting "to look at the sustainable economic benefits that were presented". LEK concluded "the economic benefits unique to a merger at year 5 to be $3.3 million. This compares with previous Victorian & Queensland merger studies, where the economic benefits in both cases were reported to be $2 million or less. In contrast, Ernst & Young estimated benefits unique to a merger to be $14 million (like-for-like with LEK). LEK concluded $10.7 million (of the $14 million in cost & revenue synergies) were not achievable."