New twist to proposed insurance mergers

insuranceGIFT NDOLWANE
JOHANNESBURG, (CAJ News) – SHORT-term insurance distributor, Collision and Management Centre (CMC), is concerned a proposed major between Hollard and two other companies could drive it out of business.
The mergers concern Hollard and the Regent Group as well as Hollard and MotoVantage.
CMC is worried that post-merger its sole and exclusive agreement with Regent might be terminated, driving the applicant out of business and resulting in the job losses of 28 employees.
The agreement, entered into in 2008, makes CMC the sole administrator of any claims and losses arising from Regent’s
customers.
To address the issue, the Competition Tribunal has granted CMC conditional leave to intervene in the proposed mergers.
In terms of public interest matters the CMC is entitled to attend pre-hearing conferences; provide oral and documentary evidence during the proceedings; cross-examine witnesses led by the Competition Commission and the merger parties and present argument during the proceedings.
The Competition Commission prohibited the merger with regent but parties have disputed the ruling.
– CAJ News

Short URL: http://cajnewsafrica.com/?p=16855

Posted by on Dec 6 2016. Filed under Africa & World, Featured, Finance, Insurance, National, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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