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The Australian Competition Tribunal’s authorized ANZ Group’s (OTCPK:ANZGY) (OTCPK:ANZGF) $3.2B takeover of Suncorp Bank (OTCPK:SNMYF) (OTCPK:SNMCY) on Tuesday, February 20.
The Australian Competition and Consumer Commission (ACCC) barred the acquisition in August 2023 on the grounds that it would harm competition in Australia’s banking industry, while ANZ (OTCPK:ANZGY) and Suncorp (OTCPK:SNMYF) appealed for a ruling. Originally, ANZ (OTCPK:ANZGY) entered into an agreement to buy Suncorp Bank (OTCPK:SNMYF) in July 2022.
ANZ (OTCPK:ANZGY) shares were down 2%, while Suncorp (OTCPK:SNMYF) stock rose 6% on the Australian stock exchange.
ANZ (OTCPK:ANZGY) is Australia’s fourth-largest bank by market cap, and the buyout would boost its mortgage book by A$47B to A$307B.
The sale of Suncorp Bank (OTCPK:SNMYF), however, still requires approval from the Federal Treasurer and is subject to amendments to the State Financial Institutions and Metway Merger Act. In order to obtain the final permits, Suncorp (OTCPK:SNMYF) will keep up its positive collaboration with the Queensland government and the Federal Treasury, as per company announcement.
ANZ CEO Shayne Elliott said: “This is a significant milestone and an important step forward in the process, however we still have further conditions to meet. We remain committed to completing the acquisition as soon as possible once all sale conditions are met.”
If approved, completion is anticipated by the middle of 2024.
In case deal closes, Melbourne-based ANZ (OTCPK:ANZGY) will be able to expand its loan portfolio at a time when banks are finding it difficult to draw in new customers due to rising interest rates.