The Australian Competition and Consumer Commission (ACCC) is inviting submissions over moves by comparison site Compare the Market to acquire more shares in competitor iSelect.

The consumer watchdog says Compare the Market’s owner, Innovation Holdings Australia (IHA), proposes to acquire up to an additional 6% of the shares of iSelect, taking its stake to 35%. The watchdog is accepting submissions on the issue until November 20.

IHA acquired around 29% of iSelect shares through a series of acquisitions beginning in 2018 without prior consultation with the ACCC.

IHA is owned by BHL, a London-based company owned by South African billionaire Douw Steyn. BHL also owns Auto & General, which operates the Budget Direct brand and underwrites insurance for ING, Catch Essentials, Qantas and Virgin Money.

The ACCC says it is reviewing the iSelect share issue matter from an enforcement perspective and has not placed it on the mergers public register.

“Companies acquiring strategic or potentially controlling stakes in a competitor will continue to attract scrutiny,” ACCC Commissioner Stephen Ridgeway said. “We are considering whether the completed and proposed acquisitions are likely to substantially lessen competition.”

iSelect says in a statement to the Australian Securities Exchange that it is not currently negotiating with IHA, which it says dropped plans for an off-market takeover at a price of 40 cents per share amid impacts from the COVID-19 pandemic.

iSelect’s two websites compare different types of insurance, energy and financial products and services, as well as mobile phone and internet plans.

Submissions should be forwarded to mergers@accc.gov.au with the title: ‘Submission re: Innovation Holdings/iSelect’.