Treasurer Jim Chalmers gives final approval for ANZ takeover of Suncorp

ANZ Bank has been given the final approval for its $4.9bn takeover of Suncorp’s banking arm.

ANZ Bank’s $4.9bn takeover of Suncorp’s banking arm has been given the tick of approval from Treasurer Jim Chalmers.

The massive deal comes after ANZ successfully overturned the nation’s competition watchdog’s opposition to the takeover when the Australian Competition Tribunal granted the deal.

“I received very clear advice from Treasury, APRA, ASIC and the Department of Home Affairs that it wouldn’t be in the national interest to prohibit this transaction,” Dr Chalmers said.

The move was approved on Friday. Picture: NewsWire / David Swift

Treasurer Jim Chalmers described his decision to approve ANZ’s $4.5bn purchase of Suncorp Bank as an ‘on balance call’. Picture: NewsWire/Tertius Pickard

Dr Chalmers approved the transaction on Friday morning on the condition ANZ would retain a presence in regional Australia and there will be no net job losses for three years.

The merger is also reliant upon ANZ committing to its reaching an agreement with Australia Post, on a commercial basis, to offer Bank@Post services to its customers.

ANZ chief executive Shayne Elliott said the deal will provide customers with greater choice.

“This is a significant milestone in our plans to expand our presence in Queensland and bring the best of ANZ to Suncorp Bank customers,” Mr Elliott said.

ANZ chief executive Shayne Elliott says the purchase will provide stability for customers. Picture: Dan Peled / NCA NewsWire

“We are another step closer to welcoming Suncorp Bank customers into the ANZ Group.

“Suncorp Bank customers will continue to receive the same great service, from the same exceptional Suncorp Bank staff.

“Over time, we’ll make available to them ANZ’s leading technology, giving them access to the very latest in banking services.”

Finance Sector Union president Wendy Streets welcomed the continued promise of keeping regional branches as part of the merger.

“We’re pleased to see commitments that for three years, no regional ANZ or Suncorp bank in Australia will be closed, there will be no changes to the number of Suncorp branches in Queensland and no net job losses across Australia as a result,” Ms Streets said.

“This gives our finance workers greater job security during what is a challenging process.

“Importantly, vital banking services will be protected in regional communities, something that is desperately needed amid the slew of regional bank closures we’ve seen take place in recent years.

“The FSU has strongly advocated for our ANZ and Suncorp members throughout this process.

“We sincerely thank the Treasurer for listening to the voices of hundreds of finance workers and ensuring they are not forgotten.”

The merger comes more than two years after ANZ announced its intention to acquire Suncorp’s banking arm.

However, the road has been difficult for the takeover after the ACCC blocked the original plan over concerns it would be detrimental to consumers and the banking sector as a whole.

ANZ will now become Australia’s third largest bank. Picture: Dan Peled / NewsWire

Friday’s approval will mean ANZ will become the third largest bank in Australia, overtaking NAB.

Mr Elliott said the completion of the acquisition is expected to occur at the end of July.

“Looking ahead, we’re pleased to be one step closer to this strategically important acquisition which will allow us to add scale to our Retail and Commercial businesses while enabling ANZ to more effectively compete in the Australian market,” he said.

“Our plans for the integration are well advanced and we are confident of the substantial benefits that will flow.”