The Australian Competition and Consumer Commission has given its approval to the proposed merger between personal and commercial insurers Suncorp Metway and Promina Group, stating that it will not intervene in proceedings.
Under the agreement, Suncorp will acquire rival insurer Promina for a total purchase price of A$7.9 billion.
The Australian Competition and Consumer Commission (ACCC) gave the merger the green light, stating that it was believed to be unthreatening and unlikely to substantially lessen competition in any of the markets, according to ACCC chairman Graeme Samuel.
In a statement welcoming the regulator’s decision, Suncorp CEO John Mulcahy said: This proposed merger will bring together two successful and well-managed businesses to create one of Australia and New Zealand’s leading diversified financial services organizations.
Following the news, Suncorp’s shares increased by around 4% and Promina shares shot up by more than 3%.