Suncorp subsidiary Vero New Zealand will appeal against the Commerce Commission’s decision to decline its application to acquire 100% of insurer Tower.

As reported in a Breaking News bulletin last week, Vero has lodged a challenge with the New Zealand High Court.

Tower says it will “fully support” Vero’s action, and intends to file its own cross-appeal.

“Tower understands Vero is seeking to have its appeal heard before the end of the… calendar year and Tower supports a prompt resolution of the matter,” Chairman Michael Stiassny said.

“In the meantime, the Tower board continues to consider a capital raise to ensure prudent management of the balance sheet and accelerate the transformation of the business.”

Commission Chairman Mark Berry said last month the merger could “substantially lessen” competition in the personal insurance market, leaving just Vero and IAG as significant insurers in the space.

The commission says there are other viable options for Tower, including being acquired by another third party or continuing as a standalone entity.

Before Vero’s offer, the Tower board approved a bid from Canada’s Fairfax Financial Holdings.