Bermuda re/insurers IPC Holdings Ltd. and Max Capital Group Ltd. have cleared the first regulatory hurdle en route to their planned amalgamation and now expect to close the deal in June.

Yesterday the companies announced jointly that the Federal Trade Commission (FTC) and the Antitrust Division of the US Department of Justice (DOJ) had granted early termination of the Hart-Scott-Rodino (HSR) waiting period, effective yesterday.

The action satisfies one of the conditions to complete the two companies' plan to merge.

Completion of the amalgamation is also subject to approval of both IPC's and Max's shareholders, among other things. IPC currently expects to be able to complete the transaction with Max in June, with all regulatory approvals obtained.

A third Bermuda company, Validus Holdings Ltd., has tried to derail the agreement by proposing an alternative offer to buy Validus in a $1.68 billion, all-share deal.

The IPC board rejected the Validus offer, but Validus is now trying to persuade IPC shareholders to vote against the Max amalgamation.

IPC chairman Kenneth Hammond said yesterday: "IPC remains committed to completing our transaction with Max, which we believe will create a more diversified and balanced platform for growth and shareholder value creation.

"The IPC board believes that increased diversification will have the potential to reduce volatility and capital risk inherent in a monoline property cat business while also improving asset, financial and operating leverage to deliver enhanced shareholder returns."

Max's chief executive officer Marston (Marty) Becker said: "We are pleased that our proposed combination with IPC has been reviewed and granted early termination by the FTC and DOJ and we are now one step closer to achieving the many strategic benefits that this transaction will accomplish for our shareholders."