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IAG awaits September decision on RAC

The competition regulator is expected to deliver a decision on IAG’s acquisition of the RAC insurance business in September.

The Australian Competition and Consumer Commission has called for submissions by Wednesday next week and a provisional timeline shows it intends to release either a final decision or statement of issues on September 4.

The plan to buy the WA motoring club’s insurance business for $1.35 billion was announced last month following IAG’s similar deal with RACQ and Allianz Australia’s RAA underwriting acquisition, which have both gained regulatory clearance.

RAC’s home and motor products are distributed through its network via call centres, WA physical branches and its website.

“The ACCC’s investigation is focused on the impact of the proposed acquisition on competition in Australia and, in particular, in WA,” the regulator says in a letter to interested parties released last week.

It is seeking views on how closely IAG and RAC compete, the influence of other providers, the deal’s likely impact on product prices and quality, and possible repair service repercussions.

Details of the RAC inquiry are available here.