It’s a big week for the banking community – Westpac is reporting its results, as is Bendigo and Adelaide Bank, and then there is the court decision over whether ANZ’s acquisition of Suncorp Bank can proceed.
All are being scrutinised by investors for takeover activity.
ANZ and Westpac are said to be interested in acquisitions, and the ANZ-Suncorp situation likely to cause a chain reaction of other developments, regardless of the outcome.
To recap, ANZ agreed to buy Suncorp for $4.9bn in 2020 but the watchdog – the Australian Competition & Consumer Commission – blocked the plan last year.
The case was appealed to the Australian Competition Tribunal, headed by Federal Court judge Justice John Halley, which is due to hand down its decision on February 20.
If the deal is blocked, then Bendigo and Adelaide Bank, which has expressed interest in buying Suncorp in the past, may have a second attempt at buying the lender.
If the deal proceeds, it could restart the conversation about a merger between Bank of Queensland and Bendigo and Adelaide Bank.
One thing most believe is that consolidation of regional lenders needs to occur because their margins and costs remain under pressure.
The big question is how they make a deal work.
Margins will be a major focus when Bendigo Adelaide Bank delivers its result on Monday, and that’s supposedly the catalyst when it comes to merger and acquisition activity.
Anglo ready to announce winner of coal mine auction
A decision by Anglo American about its Queensland-based coal assets is believed imminent, a week on from when final bids were due.
KKR seeks to offload Colonial First State stake
KKR is understood to be creating a data room for at least one prospective trade buyer to consider the $3bn-plus wealth management business, Colonial First State.