“This decision comes after careful consideration, much deliberation and consultation and a long and thorough process,” Chalmers said.
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“The proposal will allow Suncorp to focus on its insurance businesses at a time when the sector is facing a number of specific challenges, including access and affordability,” Mr Chalmers said.
Investors welcomed the ruling, which will make ANZ Australia's third-largest mortgage lender, overtaking National Australia Bank. Suncorp shares gained 3.4% to $17.36, while ANZ shares were flat at $28.29.
ANZ chief executive Shayne Elliott said the decision was a key milestone for the Melbourne-based bank's plan to further boost the Queensland market. Elliott said the deal would also help ANZ grow in retail banking, allowing it to better compete.
“Queensland is thriving. With strong economic growth, high labor force participation and more interstate migration than any other state or territory, we are excited about the opportunities Queensland presents for ANZ and our customers,” Elliott said .
ANZ chief executive Shayne Elliott said the decision was a key milestone for the Melbourne-based bank's plan to further boost the Queensland market.Credit: Arsineh Houspian
Evans and Partners analyst Azib Khan estimated the deal would improve ANZ's earnings per share by around 2% over the next three to six years, but would also increase cost challenges that the bank faces.
“We believe the acquisition will add to ANZ's medium-term cost challenges and that the acquisition will not significantly change the dial on ANZ's capital allocation, which sees the largest percentage of capital is assigned to the relatively low ROE. [return on equity] institutional divide,” Khan said.
The final step required for the acquisition to be completed is for the legal changes to come into effect in Queensland. ANZ said it expected the deal to be completed by the end of July.
