ANZ has acknowledged that the Australian Competition and Consumer Commission (ACCC) has accepted and published its application for authorisation of the proposed acquisition of Suncorp Bank. This follows ANZ's announcement on July 18, 2022, regarding an agreement to acquire Suncorp Bank from Suncorp Group Limited. The acquisition aims to accelerate the growth of ANZ’s retail and commercial businesses while enhancing its geographic balance in Australia.
ANZ Chief Executive Officer Shayne Elliott stated: “Queensland is thriving and faces the prospect of strong opportunities to further grow and prosper. Since March 2020, Queensland has recorded better economic growth, better workforce participation, and more interstate migration than any other state or territory in Australia."
Elliott emphasized Queensland's contribution to Australia's GDP and highlighted ANZ's readiness to invest in various opportunities such as energy projects, renewable initiatives, green Olympic infrastructure, and local businesses like SMEs and agribusinesses. He added: “Last month the ANZ Board visited Queensland and came away more convinced about the opportunity to support our customers and finance the growth ambitions of Queensland.”
Through acquiring Suncorp Bank, Elliott believes ANZ will increase its presence in a key Australian state while improving competition.
The application seeks ACCC’s authorisation based on arguments that it will not significantly lessen competition. It points out that markets where both banks operate are already competitive with numerous competitors. The acquisition is not expected to materially alter ANZ’s market share or increase market concentration significantly. According to ANZ, it would allow them to grow in Queensland where they have a smaller presence.
Additionally, ANZ argues that combining with Suncorp Bank would make them a more capable competitor due to complementary customer portfolios both geographically and by segment.
ANZ asserts that public benefits outweigh any potential detriments. Selling Suncorp Bank allows Suncorp Group to focus on developing its insurance business at a crucial time for Australians needing financial protection from natural disasters. Meanwhile, acquiring Suncorp Bank enables ANZ to invest further in meeting evolving customer needs within Queensland’s economy.
Details of the ACCC’s public consultation process are available on their website alongside ANZ’s authorisation application.
Besides requiring ACCC authorisation, this acquisition depends on additional conditions including approval from the Federal Treasurer as well as amendments within Queensland legislation.
While these conditions remain pending fulfillment before completion can occur—expected during late 2023—preparations have begun for integrating Suncorp into ANZ through an agreed joint transition plan with Suncorp.