Investing.com-- The Australian Competition Tribunal on Tuesday ruled in favor of ANZ Group's (ASX:ANZ) A$4.9 billion ($3.2 billion) purchase of Suncorp Group's (ASX:SUN) banking unit- a deal which was initially blocked by the Australian Competition and Consumer Commission.
ANZ said it welcomed the decision, with CEO Shayne Elliott calling the move a “significant milestone” in a press release to the Australian stock exchange.
The ACCC had rejected the deal in August 2023, after ANZ announced in 2022 that it was seeking to buy Suncorp Bank to expand its retail presence. ANZ and Suncorp had appealed the ACCC’s decision with the competition tribunal.
The ACCC had cited stark concerns over healthy competition in the banking sector after the deal, and had said the takeover could promote an oligopoly structure in Australia.
The takeover will still need to be approved by Australian Treasurer Jim Chalmers, as well as the government of Queensland, where Suncorp is based .
ANZ is part of Australia’s ‘big four’ banks, and has sought to increase its retail presence in recent years, amid growing competition in local credit markets.
On the other hand, Suncorp- one of Australia’s biggest general insurers, has sought to further streamline its business by focusing more on key areas and reducing the capital strain which comes from operating a bank.
ANZ’s shares fell 1.7% in morning trade, while Suncorp shot up 6% and were close to an over five-year high.
The broader ASX 200 index fell 0.2%.