ANZ has officially acquired Suncorp Group’s banking arm after more than two years since the deal was first announced.
ANZ chief executive officer Shayne Elliott (pictured above left) said it was an exciting day for the major bank, welcoming around 3,000 Suncorp Bank employees and 1.2 million customers into ANZ Group.
“This strategically important acquisition boosts our presence in Queensland, adds scale to our Retail and Commercial businesses, and means we can compete more effectively across the Australian market,” Elliott said.
“Suncorp Bank customers will continue to receive the same great service, from the same exceptional Suncorp Bank staff. Over time, we will make available to them ANZ’s newest technology, giving them access to the very latest banking services.
Completion of the acquisition follows the commencement of Queensland legislation amending the Metway Merger Act today after the Federal Treasurer Jim Chalmers approved the deal on June 28, 2024.
It also follows the authorisation By the Australian Competition Tribunal (ACT) on February 20 who overturned a decision by the ACCC to reject the proposal saying it would lessen competition.
However, ANZ argued the acquisition would create a combined bank that is “better equipped to respond to competitive pressures to the benefit of Australian consumers” and deliver “significant public benefits, particularly in Queensland”.
Suncorp Group chairperson Christine McLoughlin (pictured above centre) said the completion of the sale of the bank marketed a critical juncture in Suncorp’s history and resulted in Suncorp Group becoming a dedicated Trans-Tasman insurance business, “proudly headquartered in Queensland”.
"The Board continues to expect the net proceeds from the sale to be around $4.1 billion,” McLoughlin said.
“Consistent with the approach taken in previous divestments, it is our intention to return the majority of these net proceeds to shareholders, primarily by way of a capital return and a smaller fully franked special dividend component.”
“We anticipate this will occur around the first quarter of the 2025 calendar year, with timing dependent on receipt of a ruling from the Australian Tax Office (ATO) and approval from the Australian Prudential Regulation Authority (APRA)," Ms McLoughlin said.
McLoughlin said shareholder approval will also be sought on resolutions pertaining to the sale of the Bank at our 2024 Annual General Meeting to be held in October.
This includes the return of capital and consolidation of ordinary shares and the required amendments to the Suncorp Constitution to reflect Suncorp's commitments to the Queensland Government under the Metway Merger Act.
"I thank our people and shareholders for their patience throughout the extensive process."
Suncorp Group CEO Steve Johnston (pictured above right) said the completion of the sale was a significant strategic milestone and enabled Suncorp as a dedicated insurer to sharpen its focus on the way it delivered insurance to its customers and value for shareholders.
"With a heritage dating back to 1902 as the Queensland Ag Bank, Suncorp Bank has been an important part of the Suncorp Group supporting communities across both Queensland and Australia," Johnston said.
Johnston was pleased the Bank has been handed over in “good shape” to ANZ, reflecting the company’s clear strategy to improve its overall performance and risk maturity over the past four years.
However, this goes against some of the arguments outlined in the appeal to the tribunal in December, which described Suncorp Bank as a “very small participant in the banking sector” and has “no particularly unique advantage” in the market.
"As a pureplay insurer, Suncorp Group can now look forward to investing in our business and delivering greater value for our customers and communities as well as our shareholders," he said.
"Our capacity to innovate, further digitise and deliver better customer experiences, as well as tackle critical challenges such as the impacts of climate change will also be significantly enhanced.”
"We are also pleased to be able to get on with the important job of delivering on the commitments agreed with the Queensland government as part of this transaction, including investment in a disaster response centre of excellence out of our Brisbane headquarters, and the establishment of a regional hub in Townsville set to employ around 120 people."
As previously announced, Suncorp has entered into a Transitional Services Agreement with ANZ to provide a range of services to Suncorp Bank.
The majority of transitionary business and technology services are planned to be exited within two years and the remainder exited no later than five years post completion.
