Insurance Australia Group Limited (IAG) announced that it has received the required regulatory approvals from the Commonwealth Acting Assistant Treasurer for its acquisition of the Wesfarmers insurance underwriting business. IAG expects to complete the transaction on June 30, 2014.
Managing Director and CEO Mike Wilkins, said the receipt concludes the regulatory approval process, and clears the way for the completion of the acquisition; adding that “IAG is looking forward to welcoming the employees and customers of the Wesfarmers insurance underwriting businesses.
“This acquisition is a compelling strategic fit for IAG which will enable us to create a market-leading commercial lines position in Australia, sustain our market-leading position in New Zealand, and deliver significant long-term value for our shareholders,” he added.
“IAG announced in December 2013 that it had agreed to purchase the insurance underwriting businesses of Wesfarmers Limited for $1.845 billion. The acquisition comprises the companies trading under the WFI and Lumley Insurance brands, as well as a ten-year distribution agreement with Coles,” the bulletin explained.
Source: Insurance Australia Group Limited (IAG)