The Singapore government's decision to block German insurer Allianz's $2.2 billion bid for a controlling stake in local entity Income Insurance could set important precedents for future mergers and acquisitions, particularly in dealing with public interest concerns, legal experts say.

A&O Shearman has advised German insurer Allianz on its S$2.2 billion ($1.6 billion) offer for a 51 percent stake in Singapore's Income Insurance, the latest major deal in Singapore’s buzzing insurance sector.