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ANZ has provided its response to the Australian Competition and Consumer Commission (ACCC) regarding the proposed acquisition of Suncorp Bank.
Following the release of its statement of preliminary views on Tuesday (4 April), the ACCC formed the preliminary view that the information available to them was inadequate to support the assertion that the proposed merger would not result in a lessening of competition in any market.
Thus, the ACCC was seeking further evidence that the public benefits of the merger outweighed any potential detriments, extending its review period for a final decision on 28 July 2023.
In its response, ANZ has emphasised that “Suncorp Bank is not a material competitive constraint” and stated that this would remain unchanged even after the acquisition.
ANZ chief executive Shayne Elliott stated that the evidence provided by ANZ demonstrates the merger’s benign impact on competition and asserted that the banking sector in Australia is dynamic and increasingly competitive.
“The proposed acquisition will not substantially lessen competition and is in the public interest,” Mr Elliott said.
Mr Elliott added that Queensland is thriving and the bank continues to see strong opportunities for its future growth and prosperity.
“We’re excited to invest in the opportunities ahead,” Mr Elliott said.
The ACCC is currently investigating several factors, including the potential impact of the merger on lending rates, deposit rates, fees and charges, consumer choice, service levels, and innovation.
The areas of competition between ANZ and Suncorp Bank that may raise concerns are being closely examined, particularly in regions of Queensland and northern NSW, where there is a higher level of geographic overlap between the two banks.
ANZ’s submission contends that Suncorp Bank is “not a particularly important source of competition” in terms of pricing, product offerings, innovation, or customer service.
ANZ said that the removal of Suncorp Bank as an independent and established second-tier bank, or the elimination of the possibility of a merger with another second-tier bank, will also not have a substantial negative effect on competition.
“Suncorp is not a competitor that ANZ gives any particular consideration to among a wide range of competitors,” the report said.
“The ACCC should be satisfied that the proposed acquisition will not have the effect, or likely effect, of substantially lessening competition, due to the ‘removal’ of Suncorp Bank as an independent and established ‘second-tier’ bank, or the removal of the possibility that Suncorp Bank may merge with another second-tier bank.”
ANZ continues its preparations for the integration of Suncorp Bank into its operations, with the acquisition expected to be completed in the second half of 2023.
[Related: Competition concerns flagged in Suncorp-ANZ deal: ACCC]
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