ACCC Suncorp bank sale decision set for July

The Australian Competition and Consumer Commission (ACCC) expects to make a decision in late July on the sale of Suncorp bank to ANZ following a slower-than-expected review process since an approval application was lodged in December.

Many parties have requested substantial extensions to comply with information requests and it’s taken “significantly longer” than anticipated to gather all the material needed to conduct the assessment, ACCC says.

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

ANZ previously agreed to an initial extension to June 12 and last week the ACCC said the timeframe had been extended again to July 28.

Submissions on a preliminary views statement, which raised doubts over several aspects of the transaction after a consultation, were due last Tuesday.

A handful of submissions have been published to date, with the ACCC previously flagging it likely that it may receive some late contributions.

The Consumers Federation of Australia submission highlights a number of concerns, and says it supports much of the preliminary view put forward by the ACCC.

“The preliminary view considers public benefits associated with Suncorp becoming a stronger insurer and ANZ becoming a stronger bank,” it says. “We query the prospect of Suncorp being ‘stronger’ without its bank; it loses access to a banking customer base which will no doubt impact its overall business.”

Suncorp says it will submit a comprehensive response to the statement of preliminary views, and issues raised in a 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 expected timeline for completing the transaction remains the second half of this calendar year, subject to receiving required approvals, Suncorp says.