Allianz Partners has been cleared by the competition watchdog to buy Nib Holdings’ travel insurance business in Australia and New Zealand.

The Australian Competition and Consumer Commission gave the green light after reviewing the deal, which includes a 20-year distribution pact to sell white-label Allianz travel products to the private health insurer’s customers.

While there is an “overlap in the supply of travel insurance products”, the acquisition is “unlikely to have the effect of substantially lessening competition in any market”, the commission says.

“[Allianz Partners] and Nib do not appear to compete particularly closely in the supply of travel insurance in Australia. “The merged firm would continue to face competition from multiple alternative suppliers of travel insurance in Australia.”

The deal is valued at up to $50 million and includes Nib’s Travel Insurance Direct brand and a portion of Nib’s existing intermediary contracts.

Nib has said the sale represents divestment of its remaining travel insurance business.

Allianz Partners Australia CEO Chris McHugh said on LinkedIn the deal “represents an exciting opportunity to strengthen our position in one of the world’s most dynamic travel insurance markets. This approval brings us one step closer to making that vision a reality.

“While there are still commercial conditions to be met before completion, this is an important milestone for our business and a positive reflection of the opportunity ahead.”