ANZ's A$4.9 Billion Suncorp Bank Buy Approved by Australian Competition Tribunal

By Alice Uribe

SYDNEY--ANZ Group Holdings's 4.9 billion Australian dollars (US$3.2 billion) acquisition of Suncorp Group's banking unit got a major boost on Tuesday when the Australian Competition Tribunal allowed the deal to proceed.

The Tribunal set aside an earlier rejection of the deal by the Australian Competition and Consumer Commission on grounds that it lessened competition. The Tribunal's authorization of the deal came after the two companies sought a review of the ACCC's earlier decision.

"This is a significant milestone and an important step forward in the process," said ANZ Chief Executive Shayne Elliott. "However we still have further conditions to meet."

Completion of the acquisition remains subject to legislative amendments in Queensland state and approval by the Federal Treasurer, said ANZ.

ANZ in July 2022 agreed to buy Suncorp's bank, saying it could accelerate the growth of its retail and commercial businesses.

But some industry participants argued the deal could lead to less competition. ANZ and Suncorp Bank offer retail and business banking products and services in Australia, including home loans, deposit products and business banking.

The ACCC in August 2023 rejected the deal, saying it wasn't satisfied that the acquisition wouldn't substantially reduce competition in Australia's home-loan market.

The competition regulator also said an alternative deal between Bendigo and Adelaide Bank and Suncorp's bank could create a larger second-tier bank that would be better placed to "trigger a stronger competitive response from the major banks."

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

February 19, 2024 18:08 ET (23:08 GMT)

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