Bendigo-Suncorp talks ‘not appropriate’ amid appeal to $4.9b ANZ deal

afr.com:

Bendigo & Adelaide Bank boss Marnie Baker says the regional lender will only circle back with a renewed competitive bid for Suncorp’s bank if the appeals tribunal rejects ANZ’s $4.9 billion all-cash takeover offer.

The competition watchdog has already blocked the deal because it would likely reduce mortgage competition, especially in Suncorp’s home state of Queensland. ANZ has promised to appeal the ruling in a last-ditch effort to get the biggest banking acquisition since the global financial crisis across the line.

Ms Baker said her bank would keep their cards close while ANZ and Suncorp appeal the ruling. Elke Meitzel

Bendigo lobbied hard to kill the deal during the Australian Competition and Consumer Commission review, and the ACCC even said it would be partial to a merger between the two regional lenders in its final decision.

Ms Baker, speaking after the company reported a record $576.9 million cash profit for the 2023 financial year, told The Australian Financial Review she was still confident such an outcome would benefit customers and investors.

“We believe constructive conversations with Suncorp would have produced enhanced competition and community benefits and attractive outcomes for customers and shareholders,” she said, reiterating her bank tried to initiate talks with Suncorp before the announcement of the ANZ takeover last July.

Suncorp, which has an insurance and banking arm, wants to become a pure-play insurer as that industry gets harder and more expensive to manage due to climate change. While the ACCC found Suncorp’s advisers believed a deal with Bendigo was “value accretive”, sources in the target’s camp have argued it should come to the table with an offer if it is keen to put a merger together.

Bu