Update on Vero’s application to acquire Tower

WELLINGTON, New Zealand, 30 June 2017 /PRNewswire Policy/ -- The Commerce Commission has agreed to extend the date for its final decision on Vero Insurance's application seeking clearance to purchase 100% of the shares in Tower.

The Commission sent Vero a Letter of Unresolved Issues on 16 June 2017 that outlined the areas it was continuing to investigate concerning competition issues in the provision of domestic house and contents insurance and private motor vehicle insurance.

Vero requested the extension to provide additional time to respond to the Commission's letter, and for the Commission to take into account recent developments on Vero's purchase offer. The new decision date is 26 July 2017.

The Commission is not seeking any further submissions on this application.

Background

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 and through insurance brokers and banks.

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

Vero currently holds 19.99% of the shares in Tower. The proposed acquisition would result in Vero owning 100% of the shares in Tower.

A public version of the clearance application is available on the Commission's Clearances Register.

SOURCE Commerce Commission New Zealand