Wesfarmers Limited - proposed acquisition of OAMPS Limited
Type of assessment
Informal Review
Reference
25458
Acquirer(s)
Wesfarmers Limited
Target(s)
OAMPS Limited
Industry
Insurance services
Outcome of assessment
Not opposed
Total review days *
15
Commenced public review
18th September 2006
Date completed
9th October 2006
Market definition
The national market for general insurance products, as well as the supply of commercial motor vehicle insurance.
Competition analysis
On 9 October 2006 the ACCC decided not to oppose the proposed acquisition of OAMPS Limited by Wesfarmers Limited. It considered that the proposed acquisition of OAMPS' insurance underwriting business (Australian International Insurance Limited) is unlikely to substantially lessen competition in the national markets for general insurance products because the proposed acquisition is unlikely to cause significant consolidation within the market, and the merged entity would continue to face significant competition from a number of alternative general insurers.
Further, the ACCC considered that the proposed acquisition of OAMPS' insurance intermediary businesses (OAMPS Insurance Brokers Limited and Australian Underwriting Services Pty Ltd) is unlikely to raise vertical integration concerns because insurers have other distribution channels by which they could bypass any attempt by the merged entity to significantly foreclose access to the supply of insurance intermediary services.
Review timeline
Date
Event
18th September 2006
ACCC commences review under the Merger Review Process Guidelines. Market inquiries commence.
29th September 2006
Closing date for submissions from interested parties.
9th October 2006
ACCC decided not to oppose the proposed acquisition
* Total Review days = Total business days less public holidays and time during which the review was suspended.
