ANZ can now buy Suncorp banking
The Australian Competition Tribunal has overturned the ACCC’s decision to block ANZ’s $4.9bn takeover of Suncorp Bank.
The landmark verdict grants ANZ the green light to acquire Suncorp’s regional banking arm and has the potential to reshape the banking sector landscape, as it sets a new precedent for future bank mergers.
Summarising the ACT’s determination, deputy president and Federal Court justice John Halley said the tribunal concluded the merger was not likely to substantially lessen competition in home loans, or the business and agribusiness banking markets in Queensland.
“The tribunal has concluded that the small increase in the market share of ANZ, if the proposed acquisition proceeds, would not have a meaningful impact on the degree of likelihood of the major banks engaging in successful coordination,” he said.
The tribunal said the determination of the ACCC declining to grant authorisation of the proposed deal is to be set aside, and “unconditional merger authorisation” for the merger is to be granted.
“The tribunal is satisfied that the proposed acquisition represents a net public benefit because any detriments arising from any reduction in competition are unlikely to be sufficiently certain and significant to outweigh the more certain integration and productive efficiencies forecast to arise from the proposed acquisition,” Justice Halley said.
For Suncorp, the sale removes a distracting asset and allows it to focus on its core insurance business. However, it will also mean losing the stable earnings from the bank.
An ACCC spokesperson said it would “reflect” on the ruling, which demonstrated “the checks and balances of an administrative merger approval process”.