Tribunal approves $4.9bn ANZ, Suncorp deal

Federal Treasurer Jim Chalmers will take his time to consider ANZ's acquisition of Suncorp Bank, after a tribunal overruled the consumer watchdog's refusal of the $4.9 billion sale.

The Australian Competition Tribunal today approved the sale of Suncorp Group’s banking arm to ANZ Banking Group despite Australian Competition and Consumer Commission denying the merger last year.

In its refusal to grant the acquisition, the ACCC said it had concerns over the transaction, which could lead to a substantial lessening of competition.

ANZ and Suncorp appealed to the Australian Competition Tribunal for a review of the ACCC’s decision.

The competition tribunal’s decision is subject to final approval from Federal Treasurer.

Mr Chalmers said he would consider whether the acquisition was in the country’s interest under the Financial Sector Shareholdings Act.

“I’m going to take my time to do that, I’m going to work through that in the usual considered, methodical way,” he said during his trip to Perth.

“I’m going to get the application under the FSSA arrangements, I’ll get the advice from Treasury and I’ll consider that advice in a methodical, considered, careful and cautious way.

“I’ll make my decision known on whether or not this is contrary or consistent with the national interest in due course.”

If approval is received, the sale was expected to be completed by mid-2024, according to Suncorp.

Suncorp group chairman Christine McLoughlin said the group would continue to work with the Queensland government and Federal Treasury to secure the remaining approvals.

“Suncorp’s package, worth around $25 million, will not only bring continued investment and jobs in the state of Queensland, but through further investment in our end-to-end disaster management capability and natural hazard resilience initiatives, will bring benefits to customers and communities right across Australia and New Zealand,” she said.

“Importantly, our bank customers will have access to a wider range of products and services, and our people a broader range of banking career opportunities under ANZ, which has committed to maintaining and growing Suncorp Bank’s strong Queensland presence.”

ANZ chief executive Shayne Elliott said while the tribunal’s decision was a step forward, there were more conditions to be met.

“We remain committed to completing the acquisition as soon as possible once all sale conditions are met,” he said.

“Suncorp Bank is a high-quality business with a strong team and excellent customer base, and we look forward to bringing them access to the best of ANZ, including our platforms and technology.

“We strongly believe that the acquisition presents significant opportunities for ANZ, Suncorp Bank and our customers, as well as major public benefits including for Queensland.”

ACCC chair Gina Cass-Gottlieb said the commission noted the tribunal's decision and would reflect on it.

“The tribunal made findings on fundamental matters that informed our concerns, including that the national market for home loans is currently conducive to coordination and that material barriers to entry and expansion remain," she said,

"However, the tribunal didn’t consider that the proposed acquisition would meaningfully impact on the likelihood of coordination.

“Banking markets are critical for many homeowners, businesses and farmers. The ACCC will continue to apply scrutiny to these markets across the breadth of our functions including merger assessments and enforcement investigations."

In a statement, Bendigo and Adelaide Bank said it acknowledged the tribunal’s decision but remained opposed to the acquisition.

“The Bank maintains the view that the proposed merger will lead to a lessening of competition, leaving customers and communities worse off,” Bendigo and Adelaide Bank’s statement reads.

“We remain focused on our strategy and our purpose of feeding into the prosperity of our customers and their communities, not off them.”