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Insurance brokers in New Zealand have said the proposed acquisition of Lumley General Insurance (N.Z.) Ltd. by Insurance Australia Group Ltd. could crimp competition, Stuff.co.nz reports.
The takeover plan – part of IAG's $1.85 billion Australian ($1.6 billion) offer for Lumley's Australia-based parent Wesfarmers' insurance unit – is currently being assessed by New Zealand's Commerce Commission. One broker predicted that the merged firm would control just over half the insurance market, Stuff.co.nz reported.
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