IAG’s proposed $1.85 billion purchase of Wesfarmers’ insurance division moved one step closer to completion as the New Zealand Commerce Commission gave a green light to the transaction.

In December, IAG said it had agreed to buy Lumleys, the insurance underwriting business of Wesfarmers in New Zealand, a deal that chief executive Mike Wilkins aims to conclude by June 30.

On March 26, the Australian Competition and Consumer Commission said it would not oppose the takeover. Approvals are still pending from Treasurer Joe Hockey, the Australian Prudential Regulation Authority and the Reserve Bank of New Zealand.