IAG MD and CEO Mike Wilkins has achieved his aim of acquiring the Wesfarmers’ underwriting business by June 30, after the Federal Government last week gave final approval for the $1.845 billion takeover.

“This acquisition is a compelling strategic fit for IAG, which will enable us to create a market-leading commercial lines position in Australia, sustain our market-leading position in New Zealand and deliver significant long-term value for our shareholders,” Mr Wilkins said last week.

IAG announced the acquisition last December but needed approval from regulators and other government agencies here and in New Zealand.

It is buying the Wesfarmers Insurance and Lumley Insurance brands and a 10-year distribution agreement with supermarket chain Coles, which Wesfarmers also owns.