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The major bank has agreed to grant the ACCC one additional week to deliver a final decision on the merger.
The Australian Competition and Consumer Commission (ACCC) has requested a two-week extension to make its final decision on the proposed acquisition of Suncorp Group’s banking arm by ANZ Banking Group (ANZ).
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Originally set to conclude on 28 July 2023, the ACCC now seeks more time until 11 August 2023 to thoroughly assess the potential implications of the deal on competition in the banking sector.
ANZ has agreed to grant an additional extension, though for a shorter period, until 4 August 2023. This came after the bank had already granted an extension in response to the ACCC’s previous request.
In a letter between the ACCC and ANZ, the ACCC outlined the need for an extension, after the bank responded to an expert report about the merger after the deadline and in excess of the 50-page limit imposed.
Daniel McCracken-Hewson, general manager, merger investigations at the ACCC, said the delays had hindered the regulator’s ability to fully consider the material within the allotted time frame.
The ACCC requested a response to the initial report by independent expert Mary Starks by 30 June 2023 and to a supplementary report by 14 July 2023.
However, Mr McCracken-Hewson said: “ANZ provided its submission in response to the Supplementary Report after 11:00pm on Monday 18 July 2023 – more than three days after the date requested.
“It is important that the ACCC has the opportunity to meaningfully consider the new information provided by ANZ and take it into account in its decision making.”
Independent expert Ms Starks’ initial report suggested that the proposed ANZ-Suncorp merger could lead to a significant reduction in competition in the national home loan market as well as in local and regional markets for agribusiness and SME banking.
ANZ and Suncorp have also won the support of the Queensland government, but the deal has come under constant criticism from regional rival Bendigo & Adelaide Bank.
Bendigo & Adelaide Bank has argued that the acquisition would harm competition and believes the market would be better served if Suncorp’s bank became part of its operations.
ANZ chief executive Shayne Elliott has provided evidence that demonstrates the merger’s “benign impact on competition” and asserted that the banking sector in Australia is dynamic and increasingly competitive.
The extended time frame will allow the ACCC to consider ANZ’s response to the independent report and the second submission of Bendigo & Adelaide Bank.
[Related:ANZ-Suncorp merger won't substantially lessen competition: ANZ response]
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