ANZ bank’s $4.9 billion takeover of Suncorp’s banking arm has been approved by Australian Treasurer Jim Chalmers, but with strict conditions. The approval comes with the requirement that the new entity maintains a strong presence in Queensland and supports climate change initiatives. For the next three years, the new entity must ensure no net job losses and continue working with Australia Post to offer banking services to customers. ANZ must also provide $15 billion in lending and other commitments to Queensland’s renewable energy projects and support infrastructure development for the 2032 Olympic Games.
Additionally, ANZ must provide $10 billion in lending to support Queensland businesses over the next three years. It must create a tech hub in Brisbane and guarantee at least 700 jobs for five years, and 450 jobs after five years. The bank will also need to enter into an agreement with Google to work with Queensland universities on various initiatives, including a cloud digital learner program for ANZ’s Queensland employees. The focus will be on promoting women in technology.
The treasurer’s decision to approve the merger comes after the Australian Competition and Consumer Commission (ACCC) initially rejected the proposal in 2023. However, ANZ appealed the decision, and the Australian Competition Tribunal concluded earlier this year that the merger would not result in less competition in the banking sector. Mr. Chalmers took into account the unique features of this proposal, including the fact that Suncorp is one of the few combined banking and insurance companies in Australia.
ANZ CEO Shayne Elliott believes this approval is a win for Queenslanders and an opportunity for ANZ to expand its presence in the state. Queensland’s strong economic growth, high workforce participation, and population boost make it an attractive market for ANZ. Customers can expect to receive the same services they currently enjoy, with the added benefit of ANZ’s leading technology.
The acquisition is subject to three sale conditions: authorization under Australia’s competition laws, federal treasurer approval, and Queensland legislative amendments. The approval from Mr. Chalmers follows the decision of the Tribunal to authorize the acquisition and the passage of the State Financial Institutions and Metway Merger Amendment Bill in the Queensland Parliament. Once the Queensland State Financial Institutions and Metway Merger Amendment Act is proclaimed, the acquisition will be completed.
Overall, this merger between ANZ and Suncorp’s banking arm represents a significant development in the Albanese government’s approach to corporate mergers and competition policy. It showcases ANZ’s commitment to expanding its presence in Queensland and providing customers with enhanced banking services. Additionally, the strict conditions set by the treasurer demonstrate a focus on maintaining jobs, supporting climate change initiatives, and promoting technology and innovation in the region.
