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The Australian Competition and Consumer Commission (ACCC) said that it was not satisfied that the acquisition would not reduce competition in the supply of home loans, and would further crystalize the market share enjoyed by Australia’s big four banks.
““The proposed acquisition of Suncorp Bank by ANZ would further entrench an oligopoly market structure that is concentrated, with the four major banks dominating. It also limits the options for second-tier banks to combine and strengthen in a way that would create a greater competitive threat to the major banks,” ACCC Deputy Chair Mick Keogh said in a statement.
Keogh also noted that second-tier banks such as Suncorp were essential in providing competition to Australia’s biggest lenders.
ANZ had announced the Suncorp deal in July 2022, and had said that buying Suncorp’s banking arm was intended to help it reclaim market share lost to its major competitors.The deal was expected to boost ANZ’s mortgage portfolio by about A$47 billion, and would have also given the bank a pathway into Queensland, where most of Suncorp’s operations are based.
ANZ is the smallest of Australia’s big four banks by market capitalization, with the Suncorp deal intended to boost its share of the mortgage market. The bank and most of its peers are seeing increased competition as local credit conditions tighten due to rising interest rates.
Both ANZ and Suncorp expressed disappointment over the ACCC decision in separate statements. ANZ CEO Shayne Elliott said he believed the deal would increase competition and benefit Australian consumers, while noting that the ACCC rejection could be reviewed by the independent Australian Competition Tribunal.
Suncorp chair Christine McLoughlin also said the decision would be referred to the Australian Competition Tribunal.
ANZ’s Australian shares rose 1.2% after the ACCC announcement, while Suncorp fell 0.8%.
