ANZ intends to proceed with its acquisition of Suncorp following federal approval

ANZ is entering the final phase of its proposed takeover of Suncorp Bank after the deal received federal treasurer approval under the Financial Industry (Equities) Act on Friday and is scheduled to complete on July 31, 2024.

The approval follows the approval by the Australian Competition Tribunal in February 2024 and the adoption by the Queensland Government in June 2024 of regulations amending the Metway Mergers Act. The transaction was first announced in July 2022.

The integration of the two banks will take place over three years, and ANZ and Suncorp’s regional office numbers in Australia will be retained during that period. There will also be no net job losses over the three-year period.

ANZ Chief Executive, Shayne Elliott, 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.”

“Looking ahead, we are pleased to be one step closer to this strategically important acquisition, which will enable us to increase the scale of our retail and commercial businesses, while also enabling ANZ to compete more effectively in the Australian market. Our integration plans are well advanced and we are confident of the significant benefits that will flow,” Elliott said.

Following the sale, Suncorp Group CEO Steve Johnston said the company would focus on “meeting the evolving needs of insurance customers and tackling increasingly complex challenges such as climate change and affordability.” Suncorp agreed to waive the $10 million annual brand licensing fee that ANZ was to pay over a five-year period.

“The Suncorp Group Board remains committed to returning the majority of the net proceeds to shareholders upon completion of the sale,” said Suncorp Group CEO Christine McLoughlin. “The timing of the planned return of capital to shareholders is subject to finalisation of the final accounts, receipt of an Australian Tax Office ruling and Australian Prudential Regulation Authority approval. We expect the return of capital to occur in the first quarter of the 2025 calendar year.”

ANZ will continue to seek to reach an agreement with Australia Post on a commercial basis to offer Bank@Post services to its customers. The acquisition is subject to three conditions of sale – clearance under Australian competition law, approval by the Federal Treasurer and amendments to Queensland legislation.