Suncorp will not appeal against the New Zealand Commerce Commission's decision to block its $212.5 million takeover of local insurer Tower.
The financial services giant, which already holds a 19.9 per cent stake in Tower, in June raised its offer to buy all remaining shares in a deal valuing the NZ insurer at $NZ236.1 million ($A212.5 million).
That bid was rejected by the local regulator over competition concerns and an appeal by the two parties against the decision was scheduled to be heard in the New Zealand High Court in January.
But Suncorp on Tuesday said New Zealand subsidiary Vero would not proceed with the appeal after Tower terminated the merger scheme because it had passed its end date.
Tower said in a statement it was willing to negotiate a new merger plan that may result in changes to key terms, but Suncorp said it is now focused on maximising the value of its Tower shareholding.
