ANZ buys QLD Suncorp Bank for $4.9b

One of Australia’s top four banks has bought out a smaller Queensland bank in an eye-watering $4.9 billion deal.

One of Australia’s top four banks has bought out a smaller Queensland bank in an eye-watering $4.9 billion deal.

On Monday morning, Suncorp Bank announced it had accepted ANZ’s $4.9 billion bid to acquire the business.

The move solidifies ANZ’s position as one of the largest banks as the company will now reportedly have more home loans than rival NAB as well as a stronger foothold in Queensland.

ANZ will absorb $47 billion worth of home loans with strong risk profile, $45 billion in deposits as well as $11 billion in commercial loans.

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Suncorp accepted ANZ’s deal on Monday morning. Picture: NCA NewsWire / John Gass

As part of the deal, Suncorp’s current CEO, Clive van Horen, will continue in that role but report to ANZ’s CEO.

Once the acquisition is complete, Mr van Horen will join ANZ’s Executive Committee.

In a statement, ANZ said it would be “business as usual” for Suncorp.

They assured Suncorp staff there would be no changes to employment conditions or any net losses until at least three years after the merger was completed.

There will also be no changes to the total number of Suncorp Bank branches in Queensland for that same period of time.

The acquisition is expected to be over by the second half of next year.

ANZ paused its shares on Monday morning in a trading halt as the bank seeks to raise about $3.5 billion in new equity to afford Suncorp.

The company said it expected to begin trading its shares again on Thursday this week.

Suncorp is being absorbed by ANZ.

ANZ Chief Executive Officer Shayne Elliott said, “This is a growth strategy for ANZ and we will continue to invest in Suncorp Bank and in Queensland for the benefit of all stakeholders …

“We opened our first branch in Brisbane in 1851 and since then we’ve built a great business in Queensland, particularly in Institutional banking.

“While we have an outstanding team already supporting our customers, we recognise in order to provide better services and improve competition for all Queenslanders we need to build on our existing retail banking presence.”

The acquisition is required to take at least a year and has to meet certain conditions. Federal Treasurer Jim Chalmers and the Australian Competition and Consumer Commission have to approve the deal.

ANZ has lodged a trading update for the nine months to 30 June 2022 with the Australian Securities Exchange.

ANZ has paused trading on the stock market. Picture: NCA NewsWire / Damian Shaw

It comes just hours after ANZ pulled out of discussions for another $4 billion acquisition, this time with an Australian accounting software maker.

Last week, the big bank confirmed it was in discussions with MYOB to buy its technology but this was scrapped on Monday.

The proposed deal was criticised by investors and market analysts.

Earlier this month ANZ was also rumoured to have been in discussions with collapsed neobank Volt.

Volt’s technology was understood to be more advanced than that of ANZ.