The financial services industry is buzzing with merger and acquisition talk – particularly the Suncorp offer to Promina – but it remains to be seen if the corporate watchdog has any concerns about the merger of two of the “top five” insurers.

The Australian Competition and Consumer Commission (ACCC) is expected to examine the market share in personal lines that would be held by a combined Suncorp-Promina business, particularly in Queensland compulsory third party and NSW car insurance.

ACCC spokesman Lin Enright told Sunrise Exchange News the two companies are in the process of organising submissions.

“Once we’ve received their submissions we will decide whether a formal investigation is required,” she said. “However, they have both said they are keen for regulator approval of the proposal, so I’m sure they will be doing all they can so that it goes ahead promptly.”

JP Morgan analyst Shane Fitzgerald says the personal lines market is the only area that might concern the ACCC.

“Personal lines is already a concentrated market, and if the takeover occurs it means the second-largest and third-largest players will be combined and will be as big as IAG,” he said.

Mr Fitzgerald says one consideration is whether the ACCC looks at the proposal on a state or national basis. “Compulsory third party is state-based, and motor and home is national, so it will be interesting to see how the ACCC assesses the proposal.

“There’s a whole range of competition-based issues and I don’t know which way it will fall, but I could make strong arguments for both.”