IAG and RAC have lodged applications that keep the door open for an Australian Competition Tribunal review of a blocked takeover deal, as they also pursue a public interest test process.

Last month, the Australian Competition and Consumer Commission opposed IAG’s acquisition of RAC underwriting, saying the deal would combine two large insurers and lead to a significant increase in WA market concentration.

RAC Group CEO Rob Slocombe and IAG chief Nick Hawkins when the deal was announced last year

IAG said it would lodge a public benefits application to the ACCC as it moves to provide further information to support the deal. The regulator allows up to 50 business days for that part of the process.

Meanwhile, IAG and RAC have each lodged applications with the Australian Competition Tribunal, which must receive paperwork within 14 calendar days after ACCC’s reasons for opposition are published on the acquisitions register.

“This is a necessary step to preserve IAG’s review rights,” a spokesman for the insurer told insuranceNEWS.com.au. “This application does not affect the separate public benefits process, which we are progressing.”

The applications show they will ask the tribunal to set aside the ACCC decision and determine that the acquisition may proceed.

The tribunal review application will be paused once IAG lodges its public benefits application. The companies would move ahead with that appeal if the public interest decision is unfavourable.

IAG announced the proposed $1.35 billion takeover of the RAC underwriting operations – along with a 20-year distribution agreement – in May last year.

The process has been prolonged because the ACCC switched to a new merger regulation regime at the start of this year.

The applications can be found here.