IAG Faces Regulatory Setback as ACCC Opposes RAC Underwriting Business Acquisition

Shares of Insurance Australia Group (IAG) experienced a decline of up to 1.7%, dropping to A$7.71 following the Australian Competition and Consumer Commission's (ACCC) opposition to its proposed A$1.35 billion acquisition of Royal Automobile Club's (RAC) underwriting business and brand. IAG plans to submit an application to the ACCC for review under the upcoming mandatory merger control regime effective January 1, 2026. Market analysts suggest that potential benefits from the merger are likely to be delayed regardless of the final regulatory decision, and the merger is currently not reflected in consensus analyst projections. IAG's stock has fallen approximately 8.2% year-to-date, including recent session losses, indicating investor concern over the acquisition's regulatory hurdles and impact on market valuation.