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Suncorp has acknowledged the consumer watchdog’s request for more time to approve the merger deal with ANZ.
Tthe Australian Competition and Consumer Commission (ACCC) has requested to extend its review period in relation to the proposed merger of Suncorp Bank with ANZ Banking Group until 28 July 2023.
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The original review deadline was 12 June 2023.
The ACCC requested, and ANZ has agreed to, the extension to grant merger authorisation for the acquisition, with Suncorp also acknowledging the change.
The proposed acquisition involves ANZ acquiring the banking arm of Suncorp Group (separate from the group’s insurance businesses in Australia and New Zealand, which do not form part of the acquisition).
The request to extend the review comes after the ACCC requested further comment from interested parties on how the acquisition would disrupt competition.
The ACCC’s preliminary view is that the areas of competition between ANZ and Suncorp Bank that have the most potential to raise competition issues stem from the activities in which they overlap, as these are the areas where interested parties “have raised the most issues”.
These include home loans, small and medium-sized enterprise (SME) banking, and retail deposits.
The ACCC said it considers there to be a higher degree of geographic overlap between ANZ and Suncorp Bank in Queensland and northern NSW.
In a statement, Suncorp said: "Suncorp acknowledges the ACCC is required to undertake a thorough assessment of the submissions and will continue to support this process...
"Suncorp maintains the view that the sale of Suncorp Bank to ANZ is in the best interests of its customers, employees, the state of Queensland, and the nation and will result in a stronger insurance and banking system in Australia."
As previously noted, Suncorp with be submitting a comprehensive response to the matters raised in the Statement of Preliminary Views and the Bendigo and Adelaide Bank submission, which had previously opposed the proposal stating it would “provide suboptimal outcomes for customers and communities”.
Further, Suncorp said it intends to return the majority of net proceeds in excess of the needs of the business to shareholders following completion and remains “fully committed to Suncorp Bank while the approval process continues.”
ACCC calls for merger reforms
The proposed merger comes as the ACCC’s chair Gina Cass-Gottlieb pushes for reforms of Australia’s merger laws.
Speaking during a National Press Club meeting in Canberra last week, Ms Cass-Gottlieb expressed concern that consumers and the Australian economy are “particularly exposed” in the current economic environment due to supply chain pressures, geopolitical issues, and the climate change transition.
She said that the current laws are “no longer fit for purpose” and are “tilted too much towards allowing potentially anti-competitive mergers to proceed”.
“Part of responding to these challenges is to encourage competitive, innovative and dynamic markets. Australia’s current merger regime is not well placed to deal with these issues,” Ms Cass-Gottlieb said.
Currently, Australia’s laws forbid mergers that are likely to result in a significant lessening of competition, however, those laws don’t require parties of planned mergers to notify or wait for clearance from the ACCC before merger completion.
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