Suncorp/Promina merger faces regulatory scrutiny
The Suncorp-Metway and Promina Group $7.9 billion merger deal is currently pending approval from the Australian Competition and Consumer Commission (ACCC), which has the power to stop the transaction.
Suncorp chair John Story confirmed a submission was lodged with the ACCC yesterday, but refused to speculate upon what decision the regulator would reach.
“The regulators know the dynamics of the general insurance industry and are well-placed to make their decision accordingly — it’s not up to us to pre-empt any ACCC decision,” he said.
“We look forward to working constructively with all regulatory agencies on this matter.”
If the deal does proceed the combined group will become the 10th largest ASX 100 company, as well as the second largest general insurer in Australia and New Zealand.
“We believe our acquisition of Promina will ensure we continue to deliver value to our shareholders,” Story said.
“It is the right opportunity, at the right time and we have the right people to make it happen.”
Apart from the ACCC’s sign off, the merger is also subject to approval by Promina shareholders, who will vote on the issue in February 2007.
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