The Australian Competition and Consumer Commission (ACCC) is looking at how the proposed merger of Aon and Willis Towers Watson (WTW) would impact the provision of commercial insurance and reinsurance offerings in this country.

The ACCC announced the probe last week, seeking submissions on a range of matters that could arise from the deal, which has already received approval from shareholders on both sides.

The regulator wants feedback on how closely Aon and WTW compete and the likely impact of the merger on fees and/or service levels of insurance and reinsurance brokerage and consulting services.

It is also seeking views on the availability of alternative suppliers of insurance and reinsurance brokerage and consulting services plus the availability of other options to these services.

“The legal test which the ACCC applies in considering the proposed acquisition is in section 50 of the Competition and Consumer Act 2010,” the regulator said. “Section 50 prohibits acquisitions that are likely to have the effect of substantially lessening competition in a market.”

ACCC says submissions will be kept confidential.

Aon announced in March it would acquire longtime rival WTW in an all-stock deal that was valued at $US29.9 billion ($41.6 billion) at that time. The acquisition creating the world’s biggest insurance broker is expected to close in the first-half of next year, pending clearance of regulatory and other conditions.

Closing date for submissions is October 16.

Click here for more information.