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· Posted on
February 21, 2024

ANZ and Suncorp's $4.9 billion marriage may be stopped at the altar for hurting competition

The ACCC has shifted its announcement regarding the ANZ-Suncorp merger until August 4th.

What's the key learning?

  • Over the past 12 months, there's concern from smaller banks that the combined ANZ and Suncorp may hurt competition in the market.
  • Large mergers or acquisitions like this one need to demonstrate that the deal would actually deliver 'public benefit'.
  • To get this merger over the line, ANZ and Suncorp must persuade the ACCC that the Australian banking industry is highly competitive.

👉 Background: In July last year, ANZ announced the 'exciting' acquisition of Suncorp for $4.9 billion. But before the celebratory party could take place, the ACCC intervened to review the deal.

👉 What happened: The ACCC was expected to make a decision by the end of this week, but given the size and scale of this merger... and the last-minute submissions from the banks, the ACCC has shifted the announcement until August 4th.

👉 What else: Over the past 12 months, there's concern from smaller banks that the combined ANZ and Suncorp may hurt competition in the market.

What's the key learning?

💡Often, large mergers or acquisitions like this one need to demonstrate that the deal would actually deliver 'public benefit'.

💡To get this merger over the line, ANZ and Suncorp must persuade the ACCC that the Australian banking industry is highly competitive. But here are some of the facts: the big four banks control more than 75% of the mortgage market, and they have seen their first half profits jump by 19% compared to the first half of 2021.

💡It'll be interesting to see whether ANZ can get this deal over the line... or whether the smaller banks, like Bendigo Bank, get to stop this marriage at the altar.

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