Australia blocks ANZ Group’s $4.31 billion Suncorp bank deal
Sign up now: Get ST's newsletters delivered to your inbox
ANZ had agreed in July 2022 to buy Suncorp’s banking operations in a bid to gain an edge over rivals.
PHOTO: REUTERS
Follow topic:
SYDNEY – ANZ Group Holdings’ A$4.9 billion (S$4.31 billion) deal to buy Suncorp Group’s banking arm was blocked by the Australian regulator, which cited competition concerns.
The Australian Competition and Consumer Commission (ACCC) decided not to grant merger authorisation for the acquisition, the regulator said in a statement on Friday.
“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 said in the statement.
The bank had agreed in July 2022 to buy the firm’s banking operations in a bid to gain an edge over rivals. Suncorp is based in Brisbane, Queensland.
Competition has remained fierce in Australia’s mortgage market as interest rates rose over the past year.
“We are naturally disappointed and disagree with the ACCC’s decision,” ANZ chief executive Shayne Elliott said in a separate statement. “We are closely reviewing the determination and will seek an independent decision through the avenues of review available to us.”
The ACCC noted that the deal would reduce competition and increase the chances of coordination between the country’s four major banks in the supply of home loans.
“A substantial lessening of competition in home loans would have major flow-on impacts to Australians with a mortgage,” Mr Keogh said.
“More than a third of Australian households have a mortgage, with loans totalling around A$2 trillion, illustrating how critical it is that competition in this market is not substantially lessened.”
ANZ shares climbed 0.8 per cent as at 10.25am in Sydney, while Suncorp declined 1.6 per cent.
Suncorp said it would fully support ANZ through the next step in the merger authorisation process, referring the ACCC’s decision to the Australian Competition Tribunal, according to a separate statement.
More detailed reasons on the decision will be released on Monday following confidentiality checks, the ACCC said. BLOOMBERG
