The ACCC has pushed its decision on the proposed $4.9 billion acquisition back by more than a month
The Australian Competition and Consumer Commission has pushed its decision on ANZ’s acquisition of Suncorp Bank back by more than a month, to July 28.
The delay comes after the corporate regulator sought further information from the market on the proposed $4.9 billion deal, The Australian reported.
The review was originally scheduled to be delivered on June 12. The ACCC said it had requested the extension from ANZ, according to The Australian.
In a statement on Monday, Suncorp said it expected the sale of its banking business would be completed in the second half of the year, subject to ACCC approval. The sale would leave Suncorp as a pure-play insurer.
“Suncorp acknowledges the ACCC is required to undertake a thorough assessment of the submissions and will continue to support the process,” Suncorp said in the statement.
The ACCC appeared to be taking a dim view of the sale earlier this month. In a preliminary statement released April 4, the regulator said it was “not convinced” about the benefits ANZ said would accrue from the merger, and demanded more information.
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“The ACCC’s preliminary view is that the information currently before it is insufficient to substantiate the nature, likelihood and extent of the claimed public benefits, including ANZ’s estimates of future synergies that will be achieved and claims regarding public commitments to investment in Queensland or improvements in prudential stability arising from the Proposed Acquisition,” the regulator said in the statement.
Suncorp said it would be “submitting a comprehensive response” to the regulator’s preliminary views, as well as a submission from Bendigo and Adelaide Bank that suggested that it, not ANZ, should be the one to acquire Suncorp Bank.
“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 banking system in Australia,” Suncorp said in its statement. “It remains Suncorp’s intention to return the majority of net proceeds in excess of the needs of the business to shareholders following completion.”
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