Competition regulator blocks ANZ takeover of Suncorp

ANZ’s plans to take over Suncorp’s banking arm have been dealt a massive blow after the competition regulator’s intervention.

ANZ’s plans to buy Suncorp’s banking arm have been dealt a massive blow after an intervention from the competition watchdog.

ANZ had planned to take over Suncorp’s banking arm in an effort to claw back ground against its rivals following the pandemic, in a deal worth around $4.9 billion.

ANZ’s plans to buy Suncorp’s banking arm have been dealt a massive blow after an intervention from the competition watchdog. Picture: NCA NewsWire / Damian Shaw

But on Friday morning the Australian Competition and Consumer Commission said the possible detriments of the takeover outweighed any benefits to consumers.

ACCC Deputy Chair Mick Keogh said second-tier banks such as Suncorp were “important competitors” against the major banks.

“We are not satisfied that the acquisition is not likely to substantially lessen competition in the supply of home loans nationally, small to medium enterprise banking in Queensland, and agribusiness banking in Queensland,” Keogh said.

“These banking markets are critical for many homeowners and for Queensland businesses and farmers in particular. Competition being lessened in these markets will lead to customers getting a worse deal,” he said.

“Second-tier banks such as Suncorp Bank are important competitors against the major banks, especially because barriers to new entry at scale into banking are very high.”

Mr Keogh said that had the deal gone ahead, it had the possibility of reducing competition in the Australian home loan market.

“We consider there is an increased likelihood of coordination between the four major banks in the supply of home loans should Suncorp Bank become part of ANZ.”

ACCC Deputy Chair Mick Keogh said that had the deal gone ahead, it had the possibility of reducing competition in the home loan market.. Picture: NCA NewsWire / Dylan Coker

“Coordinated market outcomes mean competition is muted at best, to the detriment of customers.”

Treasurer Jim Chalmers said he would not be making a comment on the decision.

“The Government respects the independence of the ACCC and does not intend to comment further on the decision or the future of the proposal,” the Treasurer said.