Treasurer Jim Chalmers has approved ANZ’s $4.9 billion takeover of Suncorp’s banking arm, less than a year after the national consumer watchdog denied the proposal over competition concerns.
The takeover was first proposed about two years ago. It would allow ANZ to absorb Suncorp’s banking businesses, based in Queensland, meaning Suncorp will primarily be an insurance company.
ANZ elevated the proposed takeover to the Australian Competition Tribunal after the Australian Competition and Consumer Commission (ACCC) intervened in the deal last August.
ANZ’s Suncorp deal
The ACCC blocked the ANZ-Suncorp deal amid concerns that it would result in substantially less competition in Queensland, and strengthen the control of the big four banks.
The ACCC’s decision was opposed by both ANZ and Suncorp, who brought the issue to Australian Competition Tribunal for review.
The Tribunal reversed the ACCC’s decision in February, finding that the proposal wouldn’t create substantial losses to competition in the national and Queensland banking sector.
Chalmer’s decision
Chalmers confirmed the takeover would go ahead on Friday, four months after the Tribunal gave the deal the green light.
The takeover will be subject to several legally binding conditions imposed by Chalmers to ensure it remains in the national interest.
This includes assurances from ANZ that it won’t close down any regional branches for at least three years, and ensure no job losses in the three years after the takeover.
What happens next?
The takeover is expected to be completed at the end of next month after new merger laws come into effect in Queensland.
ANZ CEO Shayne Elliott said Chalmers’ approval marked a “significant milestone in our plans to expand our presence in Queensland”.
Suncorp Bank branches are expected to maintain their current presence following the deal, which will allow ANZ to share their technology and banking resources with Suncorp staff.
