ACCC gives thumbs up to proposed acquisition of iSelect (ASX:ISU) by IHA

2 min read | December 03, 2022 09:00 AM AEDT | By Sonal Goyal

ACCC gives thumbs up to proposed acquisition of iSelect (ASX:ISU) by IHA — Image source: © Jarretera | Megapixl.com

Concerns of ACCC about the proposed acquisition

iSelect is an Australian consumer services company that allows Aussies to compare personal finance, insurance and utility products. Compare the market is a close competitor of iSelect as it offers similar services. Generally, comparison websites do not charge any direct costs from customers. It generates revenue by charging commissions to retailers for placing them in search results.

ACCC had heard concerns from other market participants that these two closely compete.

While addressing the concerns of market participants, the ACCC said

The watchdog added that after the acquisition, the entities would continue to face substantial competition from other sites and retailers by employing alternative ways to attract customers.

Share performance of iSelect

Backed by the announcement, iSelect shares closed 7.27% higher at AU$0.30 per share. Including today’s gain, the share price has increased by 9.26% in the last five trading sessions. In the last one year, the share price has dropped by 4.84%. In the previous six months, iSelect share price has zoomed up by 96.67%.

On Friday (2 December 2022), ASX 200 Consumer Discretionary index closed 1.02% lower at 2,934.90 points.

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