ANZ bank’s $4.9 billion (US$3.2 billion) takeover of Suncorp’s banking arm has been given the green light by Australian Treasurer Jim Chalmers—but subject to “strict” conditions.
The move was announced on the morning of June 28 but comes with the provisos that the new entity keep regional branches open, maintains a strong Queensland presence, continues offering cash services, and supports climate change initiatives.
The new entity must, for the next three years, ensure no net job losses, and continue working with Australia Post to offer banking services to customers.
On climate change, ANZ must offer $15 billion in lending and other commitments to Queensland’s renewable energy projects and support infrastructure development for the 2032 Olympic Games.
Keeping ANZ-Suncorp Local
The new bank will also need to provide $10 billion in lending to support Queensland businesses over the next three years.It must also create a tech hub in Queensland’s capital Brisbane and guarantee at least 700 jobs for five years, and 450 jobs after five years.
ANZ will need to enter into an agreement with Google to work with Queensland universities on various initiatives including a cloud digital learner program for ANZ’s Queensland employees, and to partner on reskilling programs.
There will be a focus on promoting women in technology.
Substantial home lending commitments must also be adhered to, including house lending targets of 3,000 homes and $350 million in house-related lending.
ANZ must also provide specialist support to any employees affected by the acquisition and maximise opportunities for redeployment and external placement.
Treasurer Goes the Extra Mile to Approve Merger
Mr. Chalmers, himself a Queensland federal MP, told media he had acted on advice in approving the merger.“I received very clear advice from Treasury, APRA, ASIC and the Department of Home Affairs that it wouldn’t be in the national interest to prohibit this transaction,” he said.
The treasurer’s decision comes after the Australian Competition and Consumer Commission (ACCC) knocked back the proposed merger in 2023. However, ANZ appealed the decision at the Australian Competition Tribunal, a move Suncorp supported.
The Tribunal concluded earlier this year that a merger would not result in less competition in the banking sector.
The treasurer said he “took into account the unique features of this proposal,” including the fact that Suncorp was one of the few combined banking and insurance companies in Australia.
“The proposal will allow Suncorp to focus on its insurance businesses at a time when the sector faces a range of specific challenges, including access and affordability,” he said.
“The acquisition has been proposed at a time of significant change in the banking sector, including growing competition from and opportunities in digital banking, and concerns about access to banking services particularly in regional and remote communities.
ANZ Chief Says Queenslanders Can Expect More
The move has been touted as the first major insight into the Albanese government’s take on corporate mergers and competition policy.ANZ Chief Executive Officer Shayne Elliott said the go-ahead would be a win for Queenslanders.
“This is a significant milestone in our plans to expand our presence in Queensland and bring the best of ANZ to Suncorp Bank customers,” he said.
“Queensland is thriving. With strong economic growth, high workforce participation and more interstate migration than any other state or territory, we’re excited about the opportunities Queensland presents for ANZ and our customers.”
It’s no surprise Queensland’s recent population boost is attracting business, with data from the Regional Australia Institute showing the Sunshine Coast region was the most popular destination for those moving between states.
Mr. Elliott said customers would continue to receive the same services, with more added as the acquisition took hold.
“We are another step closer to welcoming Suncorp Bank customers into the ANZ Group,” he said.
“Suncorp Bank customers will continue to receive the same great service, from the same exceptional Suncorp Bank staff.
“Over time, we’ll make available to them ANZ’s leading technology, giving them access to the very latest in banking services.”
The acquisition was subject to three sale conditions—authorisation under Australia’s competition laws, federal treasurer approval, and Queensland legislative amendments.
The approval by Mr. Chalmers follows the decision of the Tribunal to authorise the proposed acquisition on Feb. 20, and passage of the State Financial Institutions and Metway Merger Amendment Bill in the Queensland Parliament on June 14, 2024.
Completion of the acquisition remains subject to the commencement of the Queensland State Financial Institutions and Metway Merger Amendment Act, which upon proclamation will amend the Metway Merger Act to fulfil the remaining condition to facilitate the proposed acquisition.
Once this occurs, completion of the acquisition is expected to occur next month.
