Insurance Australia Group's (IAG) $1.85 billion purchase of Wesfarmers' insurance underwriting business will go ahead after the sale cleared its final regulatory hurdle.
Acting federal Assistant Treasurer Mathias Cormann has approved the acquisition. It follows earlier approval from the Australian Competition and Consumer Commission.
Welcoming the move, IAG Chief executive Mike Wilkins said the acquisition would now be completed by June 30.
"This acquisition is a compelling strategic fit for IAG which will enable us to create a market-leading commercial lines position in Australia, sustain our market-leading position in New Zealand, and deliver significant long-term value for our shareholders," he said in a statement on Friday.
Wesfarmers expects to make a pre-tax profit of between $700 and $750 million on the sale, which will be included in its 2014 financial year results.
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