ANZ’s acquisition of Suncorp is blocked by the ACCC: ‘Reduced competition in these markets means customers get a worse deal’ Suncorp bank bond

The competition regulator has refused to allow ANZ to acquire Suncorp’s banking arm in a $4.9 billion transaction that would have shaken up the banking industry.

The Australian Competition and Consumer Commission said on Friday it was not convinced the transaction would not reduce competition in Queensland home loans, small to medium business banking and agribusiness banking in Queensland.

“These banking markets are critical to many homeowners and in particular to businesses and farmers in Queensland,” said ACCC Vice President Mick Keogh

“The reduced competition in these markets will result in customers getting a worse deal.”

Mr Keogh said the regulator thought it was more likely there would be coordination between the big four banks in providing home loans if Suncorp Bank becomes part of ANZ.

ANZ and Suncorp have the option of appealing to the Australian Competition Tribunal or the Federal Court.

“We are naturally disappointed and disagree with the ACCC’s decision,” ANZ CEO Shayne Elliott said in a statement.

“We are reviewing the determination closely and will seek an independent decision through the review options available to us.

“We believe the acquisition will improve competition, benefiting Australian consumers, particularly in Queensland. All relevant markets are highly competitive and will remain highly competitive after the acquisition.

Treasurer Jim Chalmers said the government respected the ACCC’s independence and would not comment.

The deal was first announced in July 2022.