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Following the proclamation of the updated Metway Merger Act, ANZ has set a date for its acquisition of Suncorp.
Queensland governor Dr Jeannette Young has announced the proclamation of the State Financial Institutions and Metway Merger Amendment Act 2024, which paves the way for major bank ANZ to complete its acquisition of Suncorp Bank on 31 July 2024.
The proclamation sets the date for the commencement of the amendment of the Metway Merger Act, which is the final step in the ANZ-Suncorp merger process.
Once the Act is amended it will mean that approximately 3,000 employees and 1.2 million customers will be welcomed into ANZ Group from 1 August 2024, according to the major bank.
The bill, which previously outlined provisions for Suncorp’s merger with Metway Bank in 1996, has been updated to include requirements for ANZ’s acquisition. The following conditions must be written into Suncorp’s constitution under the Act:
- Suncorp must have a registered office located in Queensland.
- At least one member of Suncorp’s board of directors is to reside in Queensland.
- Suncorp’s head office is to be located in Queensland (only if the CEO performs their role in Queensland, the chairperson has an office in the state, and the usual location of board meetings is held in Queensland).
Speaking to The Adviser, Suncorp's executive general manager, home lending, Troy Fedder, commented: "We are excited to be joining ANZ and to continue delivering great customer outcomes to brokers and their customers.
"Brokers will continue to receive consistent service and support from our Suncorp Bank teams on the completion of the sale.”
The move is the last step in the merger process, after the deal received approval from federal Treasurer Jim Chalmers and the Australian Competition Tribunal earlier this year.
The federal Treasurer also outlined several conditions for the ANZ-Suncorp merger, stipulating that the merger cannot result in net job losses in Australia for three years, prohibiting regional bank closures for three years, and requiring ANZ to make every effort to join Bank@Post.
ANZ must also comply with lending commitments outlined by the Treasurer, including $15 billion of lending and other commitments to renewable energy projects in Queensland and support the development of infrastructure in preparation for the 2032 Olympic Games.
Chalmers also said that ANZ must commit to $10 billion of new lending over the next 10 years to support energy projects, including hydrogen and bioenergy projects. A further $10 billion in lending must also be provided to support Queensland businesses over the next three years and is required to engage in substantial home lending commitments.
An update on the capital impact of the merger is expected to be provided with ANZ’s full-year results on 8 November 2024.
Daniel King, ANZ's managing director of the Suncorp integration, said in a recent Bluenotes interview that communication needs to be simple and uncomplicated from day one of the merger.
He said that Suncorp Bank should be able to continue operating without interference, while ANZ focuses on ensuring the successful onboarding of employees and making sure customers do not experience change.
Speaking on how ANZ-Suncorp will achieve this, King said: "To do this well, for at least the first 100 days, the Integration Management Office (IMO) needs to be the ‘front door’ for all communication between ANZ and the Suncorp Bank team. We know a key strength of our people at ANZ is we are inherently curious and relationship-oriented."
King concluded that all employees under the merger "will be one team operating under the same purpose, strategy and with the same goals and objectives".
"Our branding might look different but our focus on our people and our customers will be the same – and we can only win together."
[Related: ANZ-Suncorp merger gets green light from Treasurer]
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