ANZ has confirmed it will seek a review of the ACCC’s decision to reject its proposal to acquire Suncorp Bank.
ANZ CEO Shayne Elliott (pictured above) said not only will the bank’s acquisition create a combined bank that is “better equipped to respond to competitive pressures to the benefit of Australian consumers”, but it will also deliver “significant public benefits, particularly in Queensland”.
“Queensland is thriving, with strong opportunities to further grow and prosper. We remain excited about the opportunities for ANZ and our customers in Queensland, and the benefits of bringing Suncorp Bank and its customers into the ANZ Group,” Elliott said.
The news came three weeks after the ACCC rejected the long-awaited deal citing concerns it would lesson competition, particularly around the second-tier banking space.
“We are not satisfied that the acquisition is not likely to substantially lessen competition in the supply of home loans nationally, small to medium enterprise banking in Queensland, and agribusiness banking in Queensland,” ACCC deputy chair Mick Keogh had said.
“These banking markets are critical for many homeowners and for Queensland businesses and farmers in particular. Competition being lessened in these markets will lead to customers getting a worse deal.”
This was a major blow to ANZ who had signed an implementation plan in June with the Queensland government to develop a tech hub in Queensland under condition that the deal would be completed.
That deal promised to boost the Queensland economy providing 700 jobs over a five-year period.
Overall, the deal has been subject to a variety of regulatory hurdles following its announcement on July 18 last year.
In June, ANZ sought to clarify the ACCC’s preliminary views. Elliott had said the acquisition would not substantially lessen competition and was in the public interest but clearly the regulatory body did not agree.
Under Australian competition law, the Australian Competition Tribunal is the review body for merger authorisation decisions and can vary or set aside the ACCC’s decision.
In addition to authorisation under Australia’s competition laws, the acquisition remains subject to additional conditions including approval from the Federal Treasurer and Queensland legislative amendments.
While the acquisition remains subject to these conditions, ANZ said that it continues its preparations for the integration of Suncorp Bank into ANZ.
“Completion of the acquisition is expected to occur in mid calendar year 2024,” the bank said.
