ACCC defeated; Suncorp-ANZ merger approved by Australian Competition Tribunal

[RSVKanga]

ANZ's Suncorp takeover to go ahead despite ACCC rebuff

ANZ's proposed acquisition of Suncorp's banking arm will proceed after a tribunal found it would not lessen competition but would benefit consumers.

www.thenewdaily.com.au

Final approval lies with the Treasurer of Australia.

 

[cove]

ANZ shares went down and Suncorp shares went up today.

 

[RSVKanga]

It’s now been given final approval by the Treasurer of Australia. Huge blow to the ACCC.

Chalmers approves ANZ’s $4.9b Suncorp deal

The decision paves the way for the biggest merger in banking since the Commonwealth Bank took out ailing Bankwest during the global financial crisis in 2008.

www.afr.com

 

[albyd]

Amazing, it took 2 years to get to this stage. No wonder things aren’t going so well …
It takes so long to get there.

Further concentration of banking power isn’t necessarily great for consumers but tying this transaction that made sense up for 2 years just for the sake of trying to right past wrongs …

My 2 cents worth anyway. There may be differing opinions on this and I’m ok with that.

 

[RooFlyer]

If the ACCC had just waived this through, I doubt if any of these forced undertakings would have been imposed (from FR article):

No regional ANZ or Suncorp branches closed Australia wide for three years.
ANZ to make best endeavours to join Bank@Post on commercial terms for a minimum of three years.
No net job losses across Australia in Suncorp Bank and ANZ, as a result of the transaction, for three years.
Work with consumer advocates, community stakeholders, and the Finance Sector Union to minimise community concerns about the acquisition.
Create a Tech Hub in Brisbane to employee at least 700 individuals for five years and at least 450 after five years
$15b of lending and other commitments for Queensland renewable energy projects and to support infrastructure development in preparation for the 2032 Olympic Games.
$10b of new lending to support energy projects in Queensland, including bioenergy and hydrogen projects over the next decade.
$10b of lending to support Queensland businesses over the next three years.
Queensland house lending targets of 3,000 homes and $350m in housing-related lending.

So ACCC again helped protect consumers, which is what its designed to do. More power them, in all parts of business.

 

[MEL_Traveller]

Yeah. At least the ACCC isn’t afraid to stand up for the consumer.

Sure, they may lose some cases, but you know what? As a consumer I don’t mind that. At least they are trying to look out for us!

And taking action shows they are toothless. Hopefully it makes companies think before they act, or try to put forward proposals that might impact consumers.

 

[albyd]

I think they're all very noble undertakings which ANZ was forced to adopt - I'm not sure if it's worth 2 years of gridlock and uncertainty to get there. Clearly Suncorp came to the view their banking operation wasn't a good fit for them and ANZ saw value in it - particularly as they've fallen behind in Qld - there's no certainty those customers will stay with ANZ throughout and after the transition. Westpac lost a whole swag of St George et al customers.

Financial Review - Business, Finance and Investment News | afr.com

The Australian Financial Review reports the latest news from business, finance, investment and politics, updated in real time. It has a reputation for independent, award-winning journalism and is essential reading for the business and investor community.

todayspaper.smedia.com.au

 

[Ansett Nostalgic]

Shame to see this go through. We need more banking choice not less.