Insurance Australia Group's (ASX:IAG) acquisition of the Royal Automobile Club of Queensland (RACQ) was recently approved by the Australian Competition Regulator, but its other deal with RAC in Western Australia "involves greater risk" of being stopped, said Citi, according to The Australian in a Tuesday report.
The Australian Competition and Consumer Commission (ACCC) said it would not oppose Insurance Australia Group's (ASX: IAG) proposed acquisition of the Royal Automobile Club of Queensland (RACQ), according to a Thursday statement by the regulator.
The regulator found the proposed acquisition is unlikely to substantially lessen competition, as IAG lacks the market power to influence prices or supply terms. post-acquisition.
Citi said it is still optimistic about the upcoming transaction, but it saw "warning signs" in the judgment, the report added.
Citi has a buy rating on IAG with a price target of AU$10.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.