Statement of Preliminary Issues released for Vero / Tower

Statement of Preliminary Issues released for Vero / Tower

The Commerce Commission has published a Statement of Preliminary Issues relating to the proposed acquisition of Tower by Vero.

The statement of preliminary issues outlines the key competition issues that the Commission currently considers will be important in deciding whether or not to grant clearance to the proposed merger. A copy can be found on the Commission’s Clearances Register.

The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisition of Tower by Vero. Submissions can be sent by email to registrar@comcom.govt.nz with the reference Vero/Tower in the subject line. Any submissions should be received by Thursday 6 April 2017.

The Commission has also updated its Clearances Register to reflect the indicative timeframe for its decision on the proposed merger. The Commission is currently scheduled to make a decision on Vero’s application by 5 May 2017. This date may change as our investigation progresses. In particular, if we need to test and consider the issues identified further, the decision date is likely to extend.

Background
Vero Insurance New Zealand Limited is seeking clearance to acquire up to 100% of the shares of Tower Limited.

Vero is the New Zealand subsidiary of Suncorp Group Limited, an Australian-based finance, insurance, superannuation and banking business. Suncorp, through Vero, Asteron Life and AA Insurance provides a range of personal and commercial insurance products direct to customers, through insurance brokers, and through banks.

Tower is a New Zealand-based insurance company that provides personal and commercial insurance products direct to customers and through banks.

When considering a proposed merger, the Commission must determine whether any competition that would be lost with the merger would be substantial.

We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available on the clearances page.

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