ANZ launches Suncorp merger appeal
ANZ said it expects its $4.9 billion acquisition of Suncorp’s banking arm to be completed by the middle of next year after it formally lodged an appeal to the consumer watchdog’s decision to block the deal on the basis that it would reduce lending competition.
In a statement on Friday, ANZ boss Shayne Elliott rejected that finding and said a merged bank would let it better respond to competitive pressures and deliver public benefits in Suncorp’s home state of 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,” Mr Elliott said.
The ACCC said the ANZ/Suncorp deal could lead to reduced competition in home loans, and agribusiness and business banking in Queensland.
It comes exactly 21 days after the Australian Competition and Consumer Commission delivered its decision after several delays.
ACCC deputy chairman Mick Keogh said the acquisition, which would have been the biggest banking transaction since the global financial crisis, would be “to the detriment of customers”.
“The proposed acquisition increases the likelihood that the major banks adopt a ‘live and let live’ approach to each other, aimed at maintaining or protecting their existing market shares,” Mr Keogh said at the time.
“This is instead of competing strongly on price, innovation and the quality of their service and products to win customers. Competition being lessened in these markets will lead to customers getting a worse deal.”
The ACCC said such a deal could lead to reduced competition in home loans, and agribusiness and business banking in Queensland.
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