Insurance and banking service provider Suncorp Group Ltd (ASX:SUN) today announced that government approval has set the stage for its purchase by one of Australia’s four major banks, ANZ Group Holdings Ltd (ASX:ANZ), a deal which the market was first told about two years ago.
The proposed purchase of Suncorp Bank has now been approved by the Federal Treasurer under the Financial Sector (Shareholdings) Act, or FSSA, a decision which opens the door for the transaction to be completed, after it was first announced in July 2022.
It had also previously received approval from the Australian Competition Tribunal in February 2024 and the passing of legislation by the Queensland government in June 2024 to amend the Metway Merger Act.
The targeted date of completion for the deal between the two companies is now set at 31 July 2024.
However, it remains subject to commencement of Queensland’s State Financial Institutions and Metway Merger Amendment Act, with the latter – upon proclamation – set to amend the Metway Merger Act to fulfil the remaining condition to facilitate the proposed acquisition.
Suncorp Group CEO Steve Johnston said the acquisition would be an important step for Suncorp Group in its bid to become a ‘dedicated Trans-Tasman insurer, proudly headquartered in Queensland’.
“Following completion, Suncorp will focus on meeting the evolving needs of insurance customers and addressing increasingly complex challenges such as climate change and affordability,” he said.
“This decision also brings us another step closer to the delivery of the jobs and investment package Suncorp agreed with the Queensland government as part of the sale process, with benefits not only for Queensland but across Australia and New Zealand more broadly.”
He added that Suncorp had agreed to waive the $10 million per annum brand license fee that ANZ was to pay for a period of five years, due to the conditions attached to ANZ’s FSSA approval.
The market responded warmly to the announcement, with Suncorp shares sitting at $17.55 at 11:09 AEST, a rise of 4.43 percent since the market opened.