ACCC wary of ME Bank bid by one of big four

The competition regulator has indicated it will not view a takeover of ME Bank by a major player favourably.

ME Bank does not operate a branch network, selling loans ­online and through mortgage ­brokers.

The competition regulator has indicated it will not view a takeover of ME Bank by a major player favourably, as more of the industry super fund-owned lender’s potential suitors emerge.

On Wednesday The Australian revealed ANZ was examining the possibility of purchasing the bank from ME’s 26 super fund owners, as were Bendigo and Adelaide Bank and Bank of Queensland.

A consortium of investors, including former Tyro Payments CEO Gerd Schenkel, have also expressed interest in the bank, which has a $15.6bn mortgage book and $19.6bn in deposits.

The Australian understands the bank’s owners are looking at a sale price of between $1.1bn and $1.5bn, around its book value.

Of the potential buyers, ANZ would have the lowest cost of acquisition — but ACCC head Rod Sims told The Australian the competition regulator would scrutinise any proposal from the larger incumbent.

“We are unable to provide a definitive view on different cat­egories of bidders, but note that there will inevitably be more focus on potential acquirers who already have a significant presence in the relevant markets,” Mr Sims said.

A sale of ME Bank would also have to be approved by the Australian Prudential Authority and Josh Frydenberg.

The Treasurer would face political pushback if he ticked off on a sale of ME Bank to one of the big four.

ME Bank does not operate a branch network, selling loans ­online and through mortgage ­brokers.

Last week the ACCC said it would closely scrutinise NAB’s planned $220m purchase of neobank 86 400, opening an informal review into the deal on Friday.

Mr Sims has previously stated his general opposition to consolidation within the banking sector.

However, in a letter sent to NSW senator Andrew Bragg and seen by The Australian, he said the regulator may allow the acquisition of smaller actors, such as fintechs, by larger banks provided it did not substantially lessen market competition.