ACCC delays Suncorp bank sale decision until July

The Australian Competition and Consumer Commission (ACCC) will delay a decision on the sale of Suncorp’s bank to ANZ until late July after seeking extra time to complete an assessment.

Suncorp said yesterday that ANZ had agreed to an ACCC request to further extend the review period for the $4.9 billion deal from June 12 to July 28.

“Subject to receiving the required approvals, the expected timeline for completion of the transaction remains the second half of calendar year 2023,” the insurer said. “Suncorp acknowledges the ACCC is required to undertake a thorough assessment of the submissions and will continue to support this process.”

The ACCC preliminary views statement released on April 4 raises doubts over several aspects of the sale and questions potential benefits argued by Suncorp and ANZ. Deal opponents include Bendigo and Adelaide Bank, which has itself flagged interest in the Suncorp banking business.

Suncorp says it will submit a comprehensive response to matters raised in the statement of preliminary views and the Bendigo and Adelaide Bank submission.

“Suncorp maintains the view that the sale of Suncorp Bank to ANZ is in the best interests of its customers, employees, shareholders, the state of Queensland and the nation, and will result in a stronger insurance and banking system in Australia,” the company says.

The ACCC usually has 90 days from when an application is lodged to make its decision, but can extend the timeframe if the applicants agree.

ANZ lodged a merger application for authorisation in December and agreed to an initial extension to June 12. A public consultation was held before the release of the preliminary views.

The competition watchdog has flagged concerns around likely impacts on home loans, SME and agribusiness banking, while it has not been convinced of the likely insurance benefits.

“The ACCC’s preliminary view is that it is not clear whether the proposed acquisition would be likely to overall improve the performance of Suncorp Group’s insurance business compared to a future without the proposed acquisition,” the statement says.

“The ACCC is also considering the weight that should be given to any such benefits, noting that the extent to which they might pass through to insurance customers is unclear.”

Submissions on the preliminary views statement are due today.