QBE Insurance (Australia) Limited - acquisition of Sanderson Insurance Brokers Pty Ld and Underwriting Agencies of Australia Pty Ltd

Acquirer(s)

  • QBE Insurance (Australia) Limited

Target(s)

  • Underwriting Agencies of Australia Pty Ltd<br/> Sanderson Insurance Brokers Pty Ld

Summary

QBE Insurance (Australia) Ltd acquired Sanderson Insurance Brokers Pty Ltd and Underwriting Agencies of Australia Pty Ltd.

Market definition

The ACCC considered the relevant markets to be:
- the market for insurance broking and underwriting of general and commercial insurance products; and
- the market for general and commercial insurance.

Competition analysis

The ACCC considered it unlikely that the increased vertical integration of the merged firm, resulting from the acquisition, would give it an increased ability and incentive to foreclose competition:
- in the market for insurance broking and underwriting of general and commercial insurance products because there are a range of other distributors of contractors plant insurance in Australia that rival insurers could switch to in the event the merged firm's distribution arm sought to raise prices or restrict access to it; and
- in the market for general and commercial insurance because there would be a range of other major Australian and overseas insurers that rival distributors could turn to if the merged firm sought to raise prices or restrict access to it.

Accordingly, the ACCC considered the acquisition was unlikely to result in a substantial lessening of competition.

Timeline

DateEvent
01/07/2008The acquisition was completed.
22/08/2008ACCC became aware that the acquisition had been completed.
25/08/2008ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
02/09/2008Closing date for submissions from interested parties.
08/09/2008ACCC announced it would not oppose the acquisition.