Competition regulator to extend probe into Insurance Australia's proposed RAC Insurance deal (updated)

Ampol

17/04/2026 01:21

Recasts paragraphs 1-2, adds details on review, IAG's response from paragraph 3 onwards

April 17 (Reuters) -
An Australian watchdog said on Friday that Insurance Australia's IAG.AX proposed takeover of RAC Insurance will require further review, citing concerns a deal could lessen competition in motor vehicle and home and contents insurance in Western Australia.

The Australian Competition and Consumer Commission's (ACCC) decision comes nearly a year after Insurance Australia
said
 it would invest A$1.35 billion ($967.01 million) to buy the underwriting business and brand of the Royal Automobile Club of Western Australia.

The review follows an initial investigation that concluded in December, when the regulator opposed the deal.

"This acquisition would combine two of the biggest insurers in WA," ACCC Chair Gina Cass Gottlieb said.

IAG waits in line as the competition watchdog raises scrutiny over major deals that could hinder competition in Australia.

Fuel retailer Ampol ALD.AX recently sweetened its remedy proposal with the competition regulator to address concerns over its A$1.1 billion takeover of EG Australia, the local arm of Britain's EG Group.

Separately, Insurance Australia said in a statement on Friday that it 'will continue to work constructively with the ACCC throughout this process'. Once finalised, the deal would add about A$1.5 billion in gross written premiums and support the insurer's regional expansion.

The watchdog said the Phase 2 assessment, which can take up to 90 days unless extended, will also examine how the takeover could affect smash repair services, which involve repairing vehicles damaged in accidents.

        ($1 = 1.3961 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Vijay Kishore and Sherry Jacob-Phillips)

 ((Nichiket.Sunil@thomsonreuters.com;))