As the New Zealand Commerce Commission delayed its decision on
IAG’s acquisition of
Lumley by yet another month, those affected confirm the move to be a prudent one.
The decision was due this Friday (28
th March) but has now been put back to 30
th April as the Commission works through a great deal of information and numerous submissions opposing the proposal.
IBANZ CEO
Gary Young was not surprised at the delay: “This delay indicates the Commerce Commission has realised how complex an issue this is. The implications for New Zealand as a country are significant.”
Spokeswoman for
Vero,
Vasantha Naidoo, said: “The proposed IAG takeover of Lumley is a complex matter that has met strong opposition.
“Vero believes the takeover would be anti-competitive and should not be authorised. That view is shared by other insurers and brokers.”
This sentiment was echoed by
Suncorp Group partner
AA Insurance. Its CEO
Chris Curtin said: “IAG’s bid for Lumley will only strengthen the already dominant position of one company in our industry.
“The proposed transaction is a complex matter, and the delay in the Commerce Commission’s decision is prudent, and will enable a more thorough examination of all the issues involved.”
Meanwhile IAG spokesman
Craig Dowling said the company had agreed to the extension being made.
“Extensions are a common part of the regulatory review process for large transactions of this type,” he said. “We continue to work closely with the NZ Commerce Commission to obtain the approvals required for completion of this transaction.”
Across the ditch, a decision from the Australian Competition and Consumer Commission was still due tomorrow.
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