The review indicated that post-acquisition, IOOF’s advice business would still only have a market share of around 10 per cent and that the market would still remain highly fragmented.

The merged entity would still face competition from AMP, a similar-sized rival, as well as smaller firms.

IOOF and MLC have both supplied wealth management solutions in the Australian market. They have competed in the supply of retail platforms for super and other retirement income, retail platforms for discretionary investments, corporate platforms for super and other retirement income, advice and investment management.

“However, feedback from consumers, financial advisers and other industry participants suggested that this deal would not be likely to substantially lessen competition,” Mr Ridgeway said.

“Despite the profile and size of this transaction, it does not raise concerns under section 50 of the Competition and Consumer Act largely due to the fragmented nature of most of the relevant markets and strong constraints from remaining competitors.”

IOOF has previously signalled it expects the deal to wrap up before June.