The Commerce Commission has received an application for clearance to merge two of New Zealand's biggest insurance companies, New Zealand Insurance Limited (NZI) and State Insurance Limited.
The Commission's Commerce Act Manager, Geoff Thorn, said that the proposal is the New Zealand arm of the proposed worldwide merger of two British-based insurance companies, CGU plc and Norwich Union plc.
CGU operates in New Zealand through its subsidiaries NZI and CGU Insurance Australia Limited. Norwich operates in New Zealand through its subsidiaries State and Norwich Union General Insurance Limited.
The Commerce Act gives the Commission 10 working-days in which to make its decision but allows for extensions of time if necessary. Working-day 10 would be April 20.
The Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects an acquisition from court action under the Act.
Public copies of CGU and Norwich's application are available from reception at the Commission's Wellington office, level 7 Landcorp House, 101 Lambton Quay.
