Australia’s competition watchdog, the ACCC, again opposes IAG’s $1.35 billion proposal to acquire RAC’s insurance business. The ACCC says the deal would substantially lessen competition.
The decision follows an earlier rejection of a similar bid. IAG re-applies in January under new acquisition rules after being refused approval late last year. The ACCC maintains its position despite the re-submission, indicating it continues to find competition concerns that are not resolved under the revised proposal and regulatory framework.
Both sources report that the ACCC “blocks” the transaction for competition reasons, but they differ mainly in emphasis. One focuses on that the watchdog opposes the deal “again,” while the other highlights the timing of IAG’s re-application and the role of new acquisition rules.
