FEDERAL treasurer Jim Chalmers has approved ANZ’s acquisition of Suncorp’s banking business after it was originally knocked by the Australian Competition and Consumer Commission.

The deal is now subject to Queensland regulatory approval before progressing.

The two banks have been progressing the transaction for the past two years. The ACCC denied the application in August last year due to concerns about its impacts on competition in regional areas, including for rural lending.

But ANZ has continued to pursue the takeover, taking it to the Australian Competition Tribunal who quashed the ACCC’s ruling in February. Today, Federal treasurer Jim Chalmers announced he had approved the acquisition with several conditions pasted at the bottom of this article.

“This decision comes after careful consideration, much deliberation and consultation, and a long and thorough process,” Mr Chalmers said in a statement.

“This was an on‑balance call, consistent with advice I received from Treasury and regulators and following nearly two‑years of scrutiny and input from industry, the Finance Sector Union, the Queensland Government and other stakeholders.”

Mr Chalmers said he acknowledged the concerns about competition, but also needed to weigh up other factors.

“I took seriously the competition concerns raised by the ACCC as part of its decision on 4 August 2023, but the Australian Competition Tribunal ultimately concluded it would not be likely to have the effect of substantially lessening competition. As the ACCC has since publicly acknowledged, the Tribunal’s decision demonstrates the checks and balances of an administrative merger approval process,” he said.

“I also took into account the unique features of this proposal, including the fact that Suncorp is one of the few remaining combined bank and insurance companies in Australia. The proposal will allow Suncorp to focus on its insurance businesses at a time when the sector faces a range of specific challenges, including access and affordability.”

Banks welcomes Federal approval

ANZ chief executive officer Shayne Elliott said: “This is a significant milestone in our plans to expand our presence in Queensland and bring the best of ANZ to Suncorp Bank customers.

“Queensland is thriving. With strong economic growth, high workforce participation and more interstate migration than any other state or territory, we’re excited about the opportunities Queensland presents for ANZ and our customers.

“We are another step closer to welcoming Suncorp Bank customers into the ANZ Group. Suncorp Bank customers will continue to receive the same great service, from the same exceptional Suncorp Bank staff. Over time, we’ll make available to them ANZ’s leading technology, giving them access to the very latest in banking services,” Mr Elliott said.

Suncorp Group CEO Steve Johnston said the decision was an important step towards Suncorp Group becoming a dedicated Trans-Tasman insurer, proudly headquartered in Queensland.

“Following completion, Suncorp will focus on meeting the evolving needs of insurance customers and addressing increasingly complex challenges such as climate change and affordability,” Mr Johnston said.

“This decision also brings us another step closer to the delivery of the jobs and investment package Suncorp agreed with the Queensland government as part of the sale process, with benefits not only for Queensland but across Australia and New Zealand more broadly.”

Conditions of acquisition

Lending Commitments

• $15 billion of lending and other commitments for Queensland renewable energy projects and to support infrastructure development in preparation for the 2032 Olympic Games.
• $10 billion of new lending to support energy projects in Queensland, including bioenergy and hydrogen projects over the next decade.
• $10 billion of lending to support Queensland businesses over the next three years.
• Substantial home lending commitments in Queensland, including house lending targets of 3,000 homes and $350 million in housing‑related lending.

Presence Commitments

• No changes to the total number of Suncorp Bank branches in Queensland for at least three years.
• No regional ANZ branches closed Australia wide for three years.
• No regional Suncorp Bank branches closed Australia wide for three years.
• Arrangements with Australia Post:
  • Suncorp Bank to renew its current agreement with Australia Post for the provision of Bank@Post services for a minimum of three years; and
  • ANZ to make best endeavours to join Bank@Post on commercial terms for a minimum of three years.

Employment Commitments

• No net job losses across Australia in Suncorp Bank and ANZ, as a result of the transaction, for three years.
• Provide employees affected by the acquisition with specialist support and maximise opportunities for redeployment and external placement.
• Work with consumer advocates, community stakeholders, and the Finance Sector Union to minimise community concerns about the acquisition.
• Physical office for an ANZ Queensland Managing Director.
• Create a Tech Hub in Brisbane to employee at least 700 individuals for five years and at least 450 after five years.
• Enter into an agreement with Google for ANZ and Google to:
  • work with Queensland universities on curriculum initiatives;
  • strengthening the focus on women in technology;
  • create a cloud digital leader program for ANZ Queensland employees; and
  • partner on reskilling initiatives.