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The ACCC is seeking further consultation from stakeholders amid concerns over the potential drawbacks of ANZ’s (ANZ) proposed acquisition of Suncorp Group’s (SUN) banking arm.
The consumer watchdog has expressed concern that the acquisition could result in reduced competition within the banking sector, which in turn would lead to higher prices.
“Our home loan price inquiry reports of 2018 and 2020 showed competition between the biggest four banks has been at best muted,” ACCC Deputy Chair Mick Keogh said.
“Any acquisition of a potential rival by one of the major banks must be closely considered.”
In December of last year, the ACCC received an application for merger authorisation from ANZ in relation to its proposal to acquire Suncorp Bank.
At first, the ACCC sought the views of multiple interested parties, including providers of banking and financial services, consumer organisations, brokers and aggregators.
The ACCC highlighted several potential areas where parties raised the most issues of concern, including the impact on small businesses, banking availability in regional areas, home loans and retail deposits.
The watchdog said its statement of preliminary views outlined the “key” competition issues it had identified to date. However, to finalise views, the watchdog has called on further submissions from stakeholders and consumers alike.
“We are seeking comment on issues including the extent to which it will impact lending rates, deposit rates, fees and charges, consumer choice, service levels, and innovation,” Mr Keogh said.
“We are also eager to hear from stakeholders about whether they think the acquisition will have any public benefits.”
ANZ Chief Executive Officer Shayne Elliott welcomed the extension of consultations by the ACCC with open arms.
“When we announced the acquisition, we acknowledged that there would be questions from the Government and regulators about the competition aspects of this transaction, and we welcomed that scrutiny and we welcome the further community consultation that will now occur,” Mr Elliot said.
In addition to the ACCC’s review, the proposed acquisition will be subject to merger authorisation under the Competition and Consumer Act and potential Federal Treasurer approval if the application falls under national interests.
The proposed acquisition will also require the Queensland Treasury to make amendments to the State Financial Institutions and Metway Merger Act, which currently requires Suncorp’s head office and key personnel to be in Queensland.
With submissions by consumers and industry stakeholders able to be made up until April 18 2023, the ACCC plans to conclude its review and announce its final decision by mid-June, 2023.
