"The merger will not increase the market power of any of the competitor undertakings so that it would lead to the creation or strengthening of the dominant position, which would result in a substantial distortion of competition", as the Czech Office for the Protection of Competition (UOHS) said in a statement published on its website.
At the same time, local media wrote that the new partnership will enable ALLIANZ to use the banking network of WUSTENROT to sell its insurance products. On the other hand, WUSTENROT will use the network of ALLIANZ to sell its mortgage loans (WUSTENROT Hypotecni Banka) and building savings (WUSTENROT Stavebni Sporitelna).
"This is a strategic takeover of companies whose products are close to ours and which also have the same business philosophy", said Jakub STRNAD, Chairman of the Czech branch of ALLIANZ quoted by autofox.cz.
All existing contracts of clients of both insurance companies of the WUSTENROT Group remain valid - as the Czech news website autofox.cz wrote.
"We expect that the business partnership with ALLIANZ will allow us to concentrate on our core business, i.e. for products and services related to the financing of housing", declared for autofox.cz Pavel VANEK, head of WUSTENROT in the Czech Republic.
According to the latest figures published by the Czech Insurance Association (CAP) - during January-September 2015, ALLIANZ Pojistovna was the third largest insurer in the country, with GWP of CZK 8.6 billion (EUR 317 milion) and a market share of 9.8%.
For the same period, the aggregate market share of the two WUSTENROT Group branches was 0.8% as follows: the non-life insurer WUTENROT Pojistovna ranked 17th (of 29 insurers) - GWP of CZK 489 million (EUR 18 million), while the life insurer WUSTENROT Zivotni Pojistovna ranked 26th - GWP of CZK 162 million (EUR 6 million).
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