ACCC approves Zurich's ClearView takeover

The Australian Competition and Consumer Commission (ACCC) has given Zurich Financial Services its blessing to acquire ClearView Wealth.

Zurich Financial Services is offering 65 cents for each ClearView share to value the takeover at about $425 million.

In its Phase 1 Determination, the ACCC said the "acquisition may be put into effect".

In assessing the deal, the watchdog said Zurich and ClearView overlap in Australia in the supply of life insurance products, particularly in the supply of products in the retail adviser channel.

It determined "the acquisition may be put into effect as it considers that the acquisition is unlikely to have the effect of substantially lessening competition in any market."

"The merged firm would continue to face competition from alternative suppliers of life insurance in the retail adviser channel, including TAL, AIA, Acenda, Metlife and NobleOak," the ACCC said.

"While the merged firm would have a moderate share of supply of life insurance in Australia, the increase arising from the acquisition would be low."

The merged firm would also be "unlikely to have the ability and incentive to foreclose rival financial advisers' access to life insurance products given there are alternative suppliers of life insurance..."

ClearView's subsidiary ClearView Life Assurance provides a range of life insurance products to customers in Australia, including life, income protection, TPD and trauma insurance. ClearView primarily supplies these life insurance products under its ClearChoice brand and via the retail financial adviser channel.

Zurich Financial Services is owned by Zurich Insurance Group, which is listed on the SIX Swiss Exchange.

ClearView directors are unanimously recommending ClearView shareholders to vote in favour of the transaction at the scheme meeting, in the absence of a superior proposal and subject to the independent expert's conclusion in its report.

Crescent Capital Partners Management, which owns 53% of ClearView, said it intends to vote in favour of the scheme.

The next steps involve receiving approval from APRA, as well as the court greenlighting the scheme.

"ClearView and Zurich are continuing to work towards the implementation of the Scheme in accordance with the indicative timetable outlined in the transaction announcement, and ClearView will update ClearView shareholders in relation to the timetable for the implementation of the scheme as required," the ASX update read.