IAG Wesfarmers deal gains regulatory approval

Insurance Australia Group's (IAG) AU$1.85 billion takeover of Wesfarmers insurance underwriting business has received the required regulatory approvals.

Mike Wilkins, IAG managing director and chief executive officer, said this concludes the regulatory approval process, and clears the way for the completion of the acquisition.

"IAG is looking forward to welcoming the employees and customers of the Wesfarmers insurance underwriting businesses.

"This acquisition is a compelling strategic fit for IAG which will enable us to create a market-leading commercial lines position in Australia, sustain our market-leading position in New Zealand, and deliver significant long-term value for our shareholders," he said.

The acquisition comprises the companies trading under the WFI and Lumley Insurance brands, as well as a ten-year distribution agreement with Coles.