SYDNEY — Australia’s government on Friday cleared a US$3.3-billion merger between the country’s ANZ and Suncorp banks, describing the decision as a close call.
Treasurer Jim Chalmers said he approved the merger after “much deliberation” following nearly two years of review by state and federal regulators.
Chalmers said it was an “on-balance call” but he received clear advice that “it would not be in the national interest to prohibit this transaction”.
The Australian Competition and Consumer Commission had blocked ANZ’s proposed takeover of Queensland-based Suncorp Bank, saying it would significantly harm competition.
READ: Australian competition regulator rejects $3.2-B ANZ-Suncorp Bank deal
But the firms managed to overturn the decision on appeal.
ANZ, already one of Australia’s big four banks, will significantly boost its position as a mortgage provider through the Aus$4.9 billion (US$3.3 billion) merger.
READ: ANZ’s $3.2-B Suncorp bank unit buyout approved by tribunal
The federal and Queensland governments imposed a string of conditions.
They included an agreement for no net job losses over three years.
The merged group is also required to lend Aus$15 billion (US$10 billion) for Queensland renewable energy products and infrastructure needed for the 2032 Brisbane Olympics.
Your subscription could not be saved. Please try again.
Your subscription has been successful.
