Its market share is estimated to grow by 2.4%
ANZ Group Holdings is set to become the third largest entity in Australia’s $2.2 trillion home loan market once its acquisition of Suncorp Group’s banking division is finalised, according to S&P Global Market Intelligence.
As of the end of 2023, ANZ held a 13.5% share of the home loan market, positioning it at fourth and just below National Australia Bank with a 14.6% market share.
Citing data from the Australian Prudential Regulation Authority, S&P stated in its analysis that after the completion of the Suncorp Bank deal, the merged organisation is projected to hold $343.63 billion in home loans, representing a 15.9% share of the market, placing it behind Commonwealth Bank of Australia with 25.3% and Westpac with 21.4%.
The deal is also expected to enhance the combined entity’s total assets and deposits, drawing it nearer to National Australia Bank’s standings.
The Australian Competition Tribunal recently reversed the Australian Competition and Consumer Commission’s initial refusal of the takeover. The tribunal determined that the slight rise in ANZ’s market share from the acquisition would not meaningfully reduce competition within the sector.
#BreakingNews: Both ANZ and Suncorp Group have applauded the Australian Competition Tribunal’s decision today to authorise ANZ to acquire Suncorp Bank.https://t.co/qaK49Hlstz#FinanceNews #Acquisition #FinancialMarket
— Mortgage Professional Australia Magazine (@MPAMagazineAU) February 20, 2024
S&P said the consensus among analysts is that the ANZ-Suncorp merger will not significantly alter the competitive landscape of the home loan market.
The finalisation of the deal is still pending legislative amendment by the Queensland Parliament and the nod from Australia’s federal treasurer.
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