Suncorp Group has welcomed the federal Treasurer’s approval of the proposed purchase of Suncorp Bank by ANZ Banking Group under the Financial Sector (Shareholdings) Act (FSSA).
The approval paves the way for the completion of the transaction, which was announced in July 2022. The completion date is targeted for July 31.
“The Suncorp Group board remains committed to returning to shareholders the majority of net proceeds following completion of the sale,” said Suncorp Group chairman Christine McLoughlin (pictured above left).
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Suncorp Group CEO Steve Johnston (pictured above right) stressed the strategic focus on insurance.
“Following completion, Suncorp will focus on meeting the evolving needs of insurance customers and addressing increasingly complex challenges such as climate change and affordability,” Johnston said in a media release.
“This decision also brings us another step closer to the delivery of the jobs and investment package Suncorp agreed with the Queensland government as part of the sale process.”
ANZ CEO Shayne Elliott expressed excitement about the acquisition.
“This is a significant milestone in our plans to expand our presence in Queensland and bring the best of ANZ to Suncorp Bank customers,” Elliott said in a media release. “We are another step closer to welcoming Suncorp Bank customers into the ANZ Group.”
Treasurer Jim Chalmers provided the rationale behind the decision.
“This decision comes after careful consideration, much deliberation and consultation, and a long and thorough process,” Chalmers said in a media release.
“The conditions I have imposed are legally binding and ensure Australians continue to have access to vital banking services, employees aren’t left behind, and Queensland and Australia benefit from the transaction.”
To ensure the transaction is in the national interest, strict conditions have been imposed.
These include prohibiting regional branch closures for three years and requiring ANZ to make efforts to join Bank@Post. Additionally, the company can have no net employment losses across Australia for three years due to the transaction.
Suncorp and ANZ are targeting a completion date of July 31, subject to the commencement of the Queensland State Financial Institutions and Metway Merger Amendment Act. This act, upon proclamation, will amend the Metway Merger Act to fulfill the remaining conditions to facilitate the proposed acquisition.
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