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The Queensland government has amended the State Financial Institutions and Metway Merger Act 1996 bill to include updated provisions for the ANZ-Suncorp merger that was given the green light by the Australian Competition Tribunal (ACT) in February.
The ANZ-Suncorp merger was subject not only to the approval of the tribunal but also to the amendment of the aforementioned bill and the endorsement of the Federal Treasurer Jim Chalmers.
The bill, which previously provided provisions for Suncorp’s merger with Metway Bank in 1996, has been updated to state that Suncorp’s constitution must include the following provisions after merging with ANZ:
- A registered office of Suncorp to be located in Queensland.
- At least one member of Suncorp’s board of directors to reside in Queensland.
- Suncorp’s head office is to be located in Queensland (only if the CEO performs their role in Queensland, the chairperson has an office in the state, and the usual location of board meetings is held in Queensland).
The updated legislation requires the CEO of Suncorp to provide the Treasurer with a certificate each year by 31 July stating that Suncorp has complied with the above provisions and has not acted in a manner that would “contravene” the requirements of the bill.
The bill, now the State Financial Institutions and Metway Merger Amendment Act 2024, will come into effect upon the completion of Suncorp Bank’s sale to ANZ Banking Group.
Suncorp is required to maintain its status as a registered company with the Australian Securities and Investments Commission (ASIC) under the bill and must refrain from doing any act that would result in Suncorp ceasing to be registered under ASIC.
The bill also requires Suncorp to provide the Treasurer with immediate written notice of non-compliance, if such issues were to arise.
ANZ and Suncorp have welcomed the passage of the updated bill in the Queensland Parliament. The major bank said: “ANZ remains committed to completing the acquisition as soon as possible once all sale conditions are met.”
Suncorp also commented on the updated bill “It is one part of a package of measures put in place to reinforce the ongoing commitment of Suncorp Group to Queensland to deliver meaningful benefits directed towards jobs and investment and supporting the continued growth of the state, as envisaged at the time the sale was announced.”
Chalmers has yet to approve the merger, the final hurdle for the ANZ-Suncorp merger; however, it has previously received support from Queensland’s Treasurer Cameron Dick.
Dick commented last year that the government had received commitments from ANZ and Suncorp that the number of jobs in the financial services industry would grow as a result of the merger.
ANZ initially made a bid for Suncorp in July 2022, however, was denied by the Australian Competition and Consumer Commission (ACCC) due to concerns over home loan competition and SME lending competition.
ANZ-Suncorp appealed the outcome and was successful in having the decision overturned by the Federal Court of Australia.
The court ruled earlier this year that ANZ and Suncorp were not of sufficient size to reduce competition in the lending market, particularly due to the dominance of the major banks and the competition that brokers bring to the industry.
[Related: ANZ-Suncorp merger given green light]
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