ACCC increases scrutiny on Promina purchase
The Australian Competition and Consumer Commission (ACCC) has stepped up its examination of Suncorp-Metway’s proposed acquisition of Promina by formally seeking further information and comment about the deal.
ACCC chair Graeme Samuel said: “The ACCC is seeking further information on its competition concerns regarding the manufacture and supply of personal insurance lines before making a final decision.
“In particular, the Statement of Issues seeks comments on the extent to which there would be competitive constraints on the merged entity should the acquisition proceed,” he added.
The consumer protection body has called for further submissions on these areas of the proposed purchase from Suncorp-Metway, as well as from any competitors, customers, distributors and other interested parties.
Submissions will be accepted by the ACCC up to December 13 of this year.
After a review of the submissions, the regulatory organisation anticipates it will be able to make a final decision on the proposed acquisition on December 20.
Suncorp-Metway announced its intention of buying Promina back in October 2006 for a consideration of $7.9 billion.
Shareholders of Promina are scheduled to vote on the deal in February 2007, and if approval is secured both parties expect the purchase to be completed in April next year.
The combined entity will become the second largest general insurer in Australia and New Zealand as well as the tenth largest ASX100 listed company, with assets totalling $63 billion.
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