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Hollard gets OK to buy Regent units

Companies

Johannesburg – Hollard’s bid to buy Regent Insurance and Regent Life Assurance has been approved, although with conditions.

In a statement, the Competition Tribunal notes Hollard is buying these units from the Imperial Group.

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The purchase price was not disclosed.

Hollard operates in the insurance sector through subsidiaries that provide life and general insurance products and services to the insurance sector.

The Regent Group offers short-term and long-term insurance policies and non-insurance products in SA, which comprises life insurance products, travel insurance products, car and home insurance products and commercial vehicle insurance.

In terms of the conditions set by the Tribunal the merging parties may not retrench any employee for a period of three years, save for certain potentially affected employees as defined in the conditions.

Regent Group, Hollard Life and Hollard Insurance shall ensure that none of their directors are appointed to the board of directors of MotoVantage or otherwise be a member of the management team to prevent an exchange of information between the companies, the Tribunal notes.

Read also: Imperial to sell interests in Regent to Hollard Group

Hollard Holdings will be entitled however to appoint a director to the board of directors of MotoVantage, as long as that director is not involved in the operation and strategy of the VAPS businesses within the Regent Group, Hollard Life and Hollard Insurance, it says.

The conditions will automatically terminate after 7 years from the approval date or upon fulfilment by the parties of their obligations, it adds.

BUSINESS REPORT ONLINE

 

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