The Australian Competition and Consumer Commission (ACCC) will not oppose Macquarie Premium Funding’s acquisition of Pacific Premium Funding from GE Capital, having decided the deal will not substantially harm competition in the market.

The regulator says there are alternatives to insurance premium funding, such as loan facilities and cash, so it may be argued the product market should be defined more broadly.

The ACCC decided last month to review the deal because of the impact on the supply of premium funding.

It says Macquarie will still face competition from other funders following the takeover.

“The threat of new entry would likely impose some further constraint on Macquarie Premium Funding,” which is a joint venture between Macquarie Bank and broker group Steadfast. 

Former Pacific CEO and now its incoming Macquarie Premium Funding CEO Stuart White says the acquisition provides scope for further innovation in products and services, and brokers and their clients will benefit.

The deal is due to be completed next month, with integration taking up to a year.