ANZ tells the ACCC there aren’t any competition barriers if the Suncorp deal proceeds

The $4.9bn purchase of Suncorp Bank will not diminish competition in the sector, ANZ says in its response to ACCC concerns.

Suncorp Group CEO Steve Johnston and ANZ chief Shayne Elliott.

ANZ has returned serve to the Australian Competition and Consumer Commission, arguing the regulator wrongly has assumed its takeover bid for Suncorp Bank would squeeze competition.

In its response to the ACCC’s statement of preliminary views, published by the regulator in April, ANZ has argued any moves it might make to limit competition or attempt to squeeze Suncorp Bank’s customers will result only in it losing market share.

ANZ chief executive Shayne Elliott said the bank had looked closely at the ACCC’s views. “We believe the evidence we have provided clearly demonstrates that the proposed acquisition will not substantially lessen competition and is in the public interest,” he said. “Indeed, the banking sector is dynamic and competitive, and competition in the banking sector continues to increase.”

ANZ’s $4.9bn bid for Suncorp Bank has dragged through the competition arena, with the ACCC warning it needed more time to assess the proposal.

In April ACCC deputy chairman Mick Keogh signalled the regulator was “not convinced” about the benefits claimed by ANZ for its buyout of Suncorp.

But ANZ has pushed back, claiming there was no “risk of unilateral effects in the supply of any particular banking products in any of the relevant markets” from its acquisition of Suncorp Bank.

“There is not evidence that Suncorp Bank would be materially more competitive in any market for the supply of banking services if it were to continue under its existing ownership or merge with another ‘second-tier bank’,” ANZ writes in its response to the ACCC.

“Suncorp Bank does not stand out from other banks as imposing a particularly strong constraint on its competitors or winning customers from them, notwithstanding its strategic Net Promoter Score.”

ANZ also has attempted to pour cold water on the counterfactual being pushed by Bendigo and Adelaide Bank, which has sought to argue its proposed combination with Suncorp Bank would better support competition in the sector.

“There is no evidence that the proposed acquisition would enable ANZ to raise prices above competitive levels,” ANZ said.

“ANZ notes that bank executives have recently acknowledged publicly that competition in home loans and commercial lending has never been stronger and has intensified since the date of this application.”

The primacy of brokers in leading home buyers to banks was pointed to by ANZ as a key factor enabling competition. “If ANZ were to compete less, it will likely lose customers (facilitated by brokers), market share and therefore any scale benefits from acquiring Suncorp Bank,” ANZ said.

Originally published as ANZ tells the ACCC there aren’t any competition barriers if the Suncorp deal proceeds