The Australian Competition and Consumer Commission has announced that it will not oppose IAG’s proposed acquisition of Wesfarmers’ insurance underwriting business.
“The ACCC found that, while the proposed acquisition would reduce the number of key underwriters from six to five for packaged farm insurance and crop insurance in Australia, the level of existing and potential competition in this market would be expected to constrain the merged firm,” ACCC Chairman Rod Sims said. “Significantly, no farmer or grower representative associations expressed concerns to the ACCC in market inquiries,” Mr Sims said.
The acquisition will see Westfarmers brands including the Lumley, Coles Insurance and WFI brands join Insurance Group Australia with a portfolio of brands in Australia including CGU, NRMA Insurance.
The ACCC’s public consultation process directed inquiries to a wide range of interested parties including rival insurers, brokers, smash repairers, and relevant industry associations including many representing primary producers.
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