Challenger Life No.2 Limited - proposed acquisition of the existing annuity policy, personal superannuation and allocated pensions business of MetLife Insurance Limited

Acquirer(s)

  • Challenger Life No.2 Limited

Target(s)

  • MetLife Insurance Limited

Summary

Challenger Life No.2 Limited proposes to acquire the existing annuity policies of MetLife Insurance Limited.

Market definition

This merger was assessed within the context of the national markets for the manufacture and supply of i) long-term annuities, and ii) short-term annuities.

Competition analysis

On 18 April 2007, the ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. Factors informing this conclusion included:

- There remain a number of sizeable competitors in the two markets, who are likely to act as a strong competitive constraint on the merged firm.

- Financial intermediaries exercise a significant degree of countervailing power, which is also likely to constrain the merged firm.

- Impending regulatory changes mean that annuity providers in the relevant markets will face competition from a wider range of products.

Timeline

DateEvent
14/03/2007ACCC commenced review under the Merger Review Process Guidelines
16/03/2007ACCC commenced market inquiries
30/03/2007Closing date for submissions from interested parties
18/04/2007ACCC announced it would not oppose the proposed acquisition