IAG To Make Public Benefits Application As ACCC Blocks IAG's Proposed Takeover Of RAC Insurance

India, Sept. 23 -- The Australian Competition and Consumer Commission, or ACCC, said on Wednesday that it has blocked the proposed acquisition of RAC Insurance, or RACI, by Insurance Australia Group Limited (IAG.AX,IAUGF,IAUGY) after an in-depth phase 2 assessment.

The market regulator noted: "IAG's proposed acquisition would have the effect or likely effect of substantially lessening competition in the supply of motor vehicle insurance and in the supply of home and contents insurance in Western Australia."

In response to the ACCC move, IAG has decided to make a public benefits application, the next part of the ACCC's merger control regime, which provides an opportunity to assess the broader benefits of the alliance alongside competition ...