The FTC has completed its investigation into the Agreements for Sale and Acquisition between Billy Craig Insurance Brokers (BCIB) and MGI (Insurance Brokers) Limited (MGIB) through which BCIB acquired MGIB.
The FTC conducted the investigation to determine whether the transaction breached section 17 of the Fair Competition Act (FCA) which prohibits agreements which contain provisions that have as their purpose the substantially lessening of competition, or have or are likely to have the effect of substantially lessening competition in a market.
The relevant market was defined as the market for insurance brokerage services and it was concluded that the Agreement was unlikely to have the effect of substantially lessening competition since it would not remove any significant competitive restraint in the market. The market includes several brokers which could offer a significant competitive restraint in the foreseeable future.
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