After some to-ing, fro-ing, and delaying, the ACCC has rejected the proposed merger between ANZ and Suncorp.
👉 Background: In July last year, ANZ announced that they were going to acquire Suncorp Bank. But before they could even pop the champers, the ACCC said they wanted to assess what the impact of this merger would be for the rest of the banking sector.
👉 What happened: After some to-ing, fro-ing, and delaying, the ACCC has rejected the proposed merger... 13 months later. They said the deal is bad for home loans, bad for business banking, and bad for agribusiness.
👉 What else: While ANZ will appeal the decision, it just highlights the might and power of the regulators when it comes to major jumbo-sized mergers.
💡It takes two to tango, but three to get a jumbo-iron sized deal over the line in Australia. The ACCC's veto of this big merger really highlights that the era of big banks getting bigger through deals is effectively, slash potentially over.
💡 But, this is a big win for the little guys and gals in the regional bank sector and credit unions too. The ACCC is openly pushing these guys and gals to become bigger and more significant players in the nation's banking market.
💡The smaller banks apply "competitive pressure" to the major banks... And competitive pressure ultimately leads to better outcomes for consumers.
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