Updated

Courtroom showdown looms for $4.9b ANZ acquisition of Suncorp Bank

Lucas Baird, James Eyers and Liam Walsh

Updated Aug 4, 2023 – 2.53pm, first published at 9.32am

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Key Points

Why it matters: The $4.9 billion ANZ/Suncorp banks is the largest banking transactions since the GFC.
But the ACCC has rejected this deal, saying it could reduce competition.
Suncorp wants to focus on insurance, which is getting harder to manage due to the climate crisis.

ANZ Bank has vowed to continue its fight to buy Suncorp Bank, after the competition regulator knocked back the $4.9 billion acquisition on fears it would “further entrench an oligopoly” and lead to reduced competition in home loans, and agribusiness and business banking in Queensland.

The Australian Competition and Consumer Commission on Friday rejected ANZ’s takeover, declaring second-tier banks provide “an important source of competitive pressure on the major banks” and that a bigger ANZ would be more likely to coordinate pricing with the other major lenders.

Lucas Baird is a journalist based in The Australian Financial Review's Sydney office.

James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay

Liam Walsh writes on investigations and companies with The Australian Financial Review. He has won multiple media awards, worked in Japan and is now based in Brisbane.