ANZ shares are rising after a “significant” agreement to acquire Suncorp Bank for $4.9 billion

ANZ Group Holdings Ltd (ASX: ANZ) shares are up on Friday morning.

At the time of writing, shares of the banking giant were up 0.5% to $28.42.

Why are ANZ shares rising?

Shares of four largest banks rise on Friday after planned takeover Suncorp Group Ltd (ASX:SUN) banking operations have taken a huge step towards completion.

This morning ANZ announced that the Federal Treasurer has approved the proposed takeover of Suncorp Bank under the Financial Sector (Shareholdings) Act 1998 (FSSA). This is subject to a number of conditions that are normal for FSSA approvals for bank takeovers.

One of the provisions states that ANZ will maintain the number of its and Suncorp Bank’s regional branches across Australia for three years.

There will also be no net loss of jobs in Australia as a direct result of the acquisition for three years. ANZ notes that these terms are in line with the integration plans of Suncorp Bank and its customers.

It must also continue its efforts to reach an agreement with Australia Post on a commercial basis to offer Bank@Post services to customers.

The Board notes that these conditions are not expected to impact the expected benefits of the acquisition. Additionally, ANZ has worked with Suncorp to agree to cover the impact of the additional approval charges. In this regard, Suncorp Group has agreed to waive the brand license fee and contribute to the additional integration costs.

“An important milestone”

ANZ CEO Shayne Elliott was very pleased with the Federal Treasurer’s approval. He said:

This is a significant milestone in our plans to expand our presence in Queensland and bring the best of ANZ to Suncorp Bank customers. Queensland is thriving. With strong economic growth, high labor force participation and greater interstate migration than any other state or territory, we are excited about the opportunities Queensland presents for ANZ and our customers.

We are one step closer to welcoming Suncorp Bank customers to the ANZ Group. Suncorp Bank customers will continue to receive the same great service from the same exceptional Suncorp Bank staff. Over time, we will make ANZ’s leading technology available to them, giving them access to the latest banking services.

Today’s approval follows the decision of the Australian Competition Tribunal on 20 February 2024 to allow the proposed acquisition and the passage by the Queensland Parliament on 14 June 2024 of an Act amending the State Financial Institutions and Metway Merger Act.

Completion of the acquisition remains subject to the commencement of the Queensland State Financial Institutions and Metway Merger Amendment Act. If all goes to plan, ANZ expects the acquisition to be completed by the end of July.

ANZ shares are up more than 20% in the last 12 months.