New Zealand’s Commerce Commission has deferred until April 30 its decision on IAG’s proposed takeover of Lumley NZ, following strong opposition.

It was due to rule on the deal last Friday, a day after its Australian counterpart.

But the commission has instead sought further information from parties that made submissions to its inquiry, a spokesman told insuranceNEWS.com.au.

The Australian Competition and Consumer Commission says it will not oppose IAG’s takeover of Wesfarmers’ underwriting business for $1.845 billion.

The acquisition of Lumley NZ has attracted opposition in New Zealand because of the market dominance it would give IAG, which also owns NZI, State Insurance and AMI.

IAG says the takeover will not substantially reduce competition, but the Insurance Brokers Association of New Zealand has raised concerns about this and capacity issues.

Suncorp told the commission IAG could gain market share of more than 60% in some areas and has urged it to reject the acquisition.

In December IAG NZ CEO Jacki Johnson told the finance website interest.co.nz that IAG would sell assets to gain approval for the Lumley purchase if it had to.

She would not identify possible divestments, and an IAG spokesman told insuranceNEWS.com.au: “We are not contemplating that sort of outcome.”