Queensland government enters $4.9bn ANZ-Suncorp Bank merger legal battle

The Queensland government has intervened in the ANZ-Suncorp Bank merger legal battle, arguing $15bn in new lending and thousands of jobs are at risk if the deal does not get over the line.

The Queensland government is seeking to intervene in an imminent legal battle to ensure ANZ’s $4.9bn deal to buy Suncorp Bank gets over the line.

The Queensland government will intervene in an imminent legal battle to ensure ANZ’s $4.9bn deal to buy Suncorp Bank gets over the line.

Australian Competition Tribunal deputy president Justice John Halley Friday morning granted leave for the State Government to make submissions in support of the contested deal on “public interest” grounds.

The intervention of the State Government could be crucial as the tribunal weighs whether the ACCC’s decision to reject the deal earlier this year is valid or whether an appeal by ANZ and Suncorp should be allowed.

The government will make written submissions to the tribunal’s formal hearings that start on December 4. A final decision is expected in February.

The Queensland government is backing the deal on the basis it will create jobs and pump billions into the local economy ahead of the Brisbane Olympics.

During the directions hearing, counsel for the ACCC had questioned whether the submissions by the government were material to the appeal and whether it would seek to introduce evidence not considered earlier by the ACCC.

Justice Halley said the intervention at this stage would be limited to a written submission with any further involvement involvement to be agreed between the parties.

According to an affidavit lodged by the state government with the tribunal, Suncorp and ANZ had made a number of “binding employment, financial and investment commitments” to take effect after the completion of the deal.

“The state has no role and makes no submissions in these proceedings in relation to the extent to which the proposed acquisition will result in any lessening of competition in the banking sector,” according to the affidavit. That is now appropriately a matter for the tribunal. The state’s submissions are limited to the public benefits issue.”

The affidavit makes public the commitments Suncorp has made to the government to keep thousands of staff, including senior executives, in Queensland for at least a decade after the deal is completed.

“Suncorp has made binding employment-related commitments … ensuring that for 10 years … the aggregate number of persons servicing the Suncorp insurance business and employed by the Suncorp Group on a full-time equivalent basis in Queensland is greater than the number of persons servicing the Suncorp Insurance Group and employed in any other state or territory of Australia,” according to the affidavit.

ANZ, meanwhile, made a commitment to allocate $15bn of new lending to support Queensland projects, including Green Olympic Games infrastructure projects and renewable projects. “This lending commitment supports renewable energy targets and infrastructure development,” according to the affidavit. The new lending will be offered over a 10-year period and will support both renewable projects and preparations for the 2032 Olympic Games.

However that commitment has a caveat and whether new lending is provided over this time frame will depend on, among other things, demand, ANZ’s credit and risk assessment of applicants, competition from other lenders and general economic, commercial and political factors.

ANZ also has committed to establishing a major tech hub in Brisbane employing at least 700 people.

Suncorp shares closed down 1.2 per cent on Thursday while ANZ fell 0.7 per cent to $25.63.