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AAP
AAP
National
Miklos Bolza

ANZ, Suncorp welcome takeover approval as ACCC reflects

ANZ's $4.9 billion takeover of Suncorp Bank has been approved by a competition tribunal. (Esther Linder/AAP PHOTOS)

ANZ has had a massive legal win after the consumer watchdog's rejection of its proposed $4.9 billion acquisition of Suncorp's banking arm was overturned on appeal.

An August decision by the Australian Competition and Consumer Commission (ACCC) declining to authorise the acquisition was overturned in a landmark judgment on Tuesday.

The Australian Competition Tribunal found the proposed merger represented a "net public benefit".

ANZ ceo Shayne Elliott (file image)
ANZ chief executive Shayne Elliott called the decision a "significant milestone". (Darren England/AAP PHOTOS)

"(The) forecast integration and productive efficiencies from the proposed acquisition constitute real and tangible benefits to the public."

The tribunal was not persuaded by the ACCC's criticisms, finding the acquisition would not substantially lessen competition in the national home loans market or the agribusiness or small-to-medium enterprise markets in Queensland.

These were the three areas the competition watchdog claimed would be negatively impacted by the takeover bid, which was first proposed in July 2022.

The Big Four banks held 72 per cent of reported banking system assets in Australia and engaged in co-ordination regarding their home loans, the tribunal found.

However, ANZ's Suncorp purchase would only result in a small increase in the bank's market share and would "not have a meaningful impact" on competition, it said.

People walk past an ANZ storefront in Sydney
NZ would be forced to provide more competitive SME offerings under the takeover, the tribunal found. (Esther Linder/AAP PHOTOS)

ANZ would also continue to offer the same agribusiness services and would be forced to provide more competitive SME offerings if the acquisition went ahead, the tribunal found.

ANZ CEO Shayne Elliott called the decision a "significant milestone" and said the bank remained committed to completing the takeover as quickly as possible.

"Suncorp Bank is a high-quality business with a strong team and excellent customer base, and we look forward to bringing them access to the best of ANZ, including our platforms and technology," he said. 

"We strongly believe that the acquisition presents significant opportunities for ANZ, Suncorp Bank and our customers, as well as major public benefits including for Queensland."

The merger is expected to be completed in mid-2024.

Suncorp chair Christine McLoughlin (file image)
Suncorp chair Christine McLoughlin called the approval a "big win for Queensland". (Dan Peled/AAP PHOTOS)

Suncorp Group chair Christine McLoughlin also welcomed the approval, calling it a "big win for Queensland".

"Importantly, our bank customers will have access to a wider range of products and services, and our people a broader range of banking career opportunities under ANZ, which has committed to maintaining and growing Suncorp Bank's strong Queensland presence," she said.

ACCC chair Gina Cass-Gottlieb said the watchdog would reflect on the tribunal's decision.

She said while findings had been made regarding some of the commission's concerns, the tribunal did not consider what meaningful impact the merger would have on bank co-ordination.

"Banking markets are critical for many homeowners, businesses and farmers," she said.

"The ACCC will continue to apply scrutiny to these markets across the breadth of our functions including merger assessments and enforcement investigations."

A Suncorp sign in Sydney
The takeover still needs legislative changes in Queensland and approval by the federal treasurer. (Esther Linder/AAP PHOTOS)

The fate of the $4.9 billion takeover will still depend on legislative changes regarding the merger by the Queensland state government as well as approval by the federal treasurer.

The tribunal has overturned other decisions by the ACCC, including the 2019 merger of Vodafone Hutchison and TPG Telecom. 

But it backed the regulator in June over its decision to block a spectrum-sharing arrangement between TPG and Telstra.

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