The ACCC is investigating acquisitions by Innovation Holdings Australia Pty Ltd. that would provide it with approximately 35 per cent of the shares of iSelect Limited (ASX: ISU).
Innovation Holdings (through its related bodies corporate) owns comparison site comparethemarket.com.au. Compare the Market and iSelect both offer services to consumers that compare various insurance, energy and financial products and services.
Innovation Holdings already owns approximately 29 per cent of the shares of iSelect, which it acquired through a series of acquisitions beginning in 2018. Innovation Holdings now proposes to acquire up to an additional 6 per cent of the shares of iSelect.
"We are considering whether the completed and proposed acquisitions are likely to substantially lessen competition. iSelect is a competitor to Innovation Holdings in offering comparison services for a range of financial and energy products to consumers and minority stakes held between competitors can give rise to competition concerns," ACCC Commissioner Stephen Ridgeway said.
Innovation Holdings acquired its current interest in iSelect without prior consultation with the ACCC. The ACCC is accordingly reviewing this matter from an enforcement perspective and has not placed it on the ACCC mergers public register.
"Companies acquiring strategic or potentially controlling stakes in a competitor will continue to attract ACCC scrutiny" Mr Ridgeway said.
