Ambrose Construct Group can proceed with its acquisition of Major Loss Builders after the competition regulator deemed the deal unlikely to affect the supply of insurance repair and restoration work.

A submission to the Australian Competition and Consumer Commission raised concerns that the buyout would increase market consolidation and make it difficult for independent suppliers with less scale to compete.

But the ACCC says it is “unlikely to have the effect of substantially lessening competition”.

Ambrose is a national insurance repair and restoration company with a focus on services provided under claims, servicing contracts directly with insurers and indirectly with insurance loss adjusters.

Major Loss Builders provides large loss commercial and residential insurance building services in WA, SA and the NT.

The ACCC says Ambrose and Major Loss Builders’ “national and state-based market share aggregations are estimated to be minimal” and they will probably remain “constrained by a large number of alternative suppliers of insurance restoration and repair services”.

Barriers to entry and expansion appear “low to moderate”, the ACCC says in an initial assessment of the deal.

“New entrants are required to obtain panel appointments from insurance customers, which are often influenced by existing relationships and demonstrated experience, alongside price and service quality levels,” the commission said.

“Independent suppliers with less scale may face challenges competing to service insurance customers. However, the acquisition would not meaningfully raise these barriers.”