Competition Commission blocks Hollard from buying Regent’s insurers
The Competition Commission has blocked an attempt by Hollard to buy two insurers in the Regent Group, along with a suite of motor warranty providers owned by the group, it said on Thursday. It has recommended that the Competition Tribunal, the last arbiter in the merger process, prohibit the transaction on competition and public interest grounds. "The insurance industry offers products that are important to South African consumers," said deputy competition commissioner Hardin Ratshisusu. "The commission is concerned that the proposed transaction is likely to substantially lessen competition in short-term insurance for credit life and shortfall cover, thereby leading to high prices to the detriment of consumers." Ratshisusu added: "The commission is also concerned that the complex structure of the transaction may lead to the exchange of competitively sensitive information between firms controlled by the merging parties and their competitors." The merger would also lead to large job l...
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