ANZ’s plans to purchase Suncorp’s banking arm have been dealt a large blow after an intervention from the competitors watchdog.
ANZ had deliberate to take over Suncorp’s banking arm in an effort to claw again floor in opposition to its rivals following the pandemic, in a deal price round $4.9 billion.
But on Friday morning the Australian Competition and Consumer Commission stated the attainable detriments of the takeover outweighed any advantages to shoppers.
ACCC Deputy Chair Mick Keogh stated second-tier banks akin to Suncorp have been “important competitors” in opposition to the foremost banks.
“We are not satisfied that the acquisition is not likely to substantially lessen competition in the supply of home loans nationally, small to medium enterprise banking in Queensland, and agribusiness banking in Queensland,” Keogh stated.
“These banking markets are critical for many homeowners and for Queensland businesses and farmers in particular. Competition being lessened in these markets will lead to customers getting a worse deal,” he stated.
“Second-tier banks such as Suncorp Bank are important competitors against the major banks, especially because barriers to new entry at scale into banking are very high.”
Mr Keogh stated that had the deal gone forward, it had the potential of decreasing competitors within the Australian residence mortgage market.
“We consider there is an increased likelihood of coordination between the four major banks in the supply of home loans should Suncorp Bank become part of ANZ.”
“Coordinated market outcomes mean competition is muted at best, to the detriment of customers.”
Treasurer Jim Chalmers stated he wouldn’t be making a touch upon the choice.
“The Government respects the independence of the ACCC and does not intend to comment further on the decision or the future of the proposal,” the Treasurer stated.
Source: www.perthnow.com.au
