ANZ’s $3.2 billion Suncorp bank unit buyout decision due on Tuesday

By Scott Murdoch

SYDNEY (Reuters) – The future of ANZ Group’s A$4.9 billion ($3.2 billion) buyout of Suncorp’s banking arm will become clear on Tuesday, with the Australian Competition Tribunal due to rule if the bank can press on with the takeover of its significant rival.

The decision, due at 9 a.m. (2200 GMT) in the Federal Court in Sydney, comes after the takeover was blocked by the Australian Competition and Consumer Commission (ACCC) in August.

ANZ, which is Australia’s fourth-largest lender by market capitalisation, appealed the ruling along with Suncorp as both parties fought for the deal to stay alive.

ANZ and Suncorp declined to comment on the tribunal’s decision.

A verdict favourable to ANZ would be a major victory to the bank but the takeover still requires Treasurer Jim Chalmers’ approval. Official sign off from the government of Queensland, where Suncorp is based, is also required.

The ACCC said last year that allowing the deal to go ahead would “further entrench an oligopoly market structure” where four lenders, including ANZ, have three quarters of the country’s A$2 trillion in home loans.

ANZ said when it first announced the Suncorp transaction in 2022 that buying the banking assets would boost its mortgage book by A$47 billion to A$307 billion.

Suncorp, one of Australia’s biggest general insurers, has been keen to streamline its business to focus on insurance and reduce the capital requirements from owning a bank.