Today I'm announcing that ANZ Group Holdings Ltd's (ANZ) proposal to acquire full ownership of Suncorp Bank (Suncorp) from Suncorp Group can proceed subject to enforceable conditions.
This decision comes after careful consideration, much deliberation and consultation, and a long and thorough process.
This was an on‑balance call, consistent with advice I received from Treasury and regulators and following nearly two‑years of scrutiny and input from industry, the Finance Sector Union, the Queensland Government and other stakeholders.
The proposed acquisition has been subject to ongoing examination by regulators and the Treasury since it was announced on 18 July 2022 and has been under formal consideration under the Financial Sector (Shareholdings) Act 1998 (FSSA) since the application was lodged on 26 March 2024.
Following this lengthy and robust process, I received clear advice from Treasury, incorporating views from APRA, ASIC, the ACCC and Department of Home Affairs, that it would not be in the national interest to prohibit this transaction.
I took seriously the competition concerns raised by the ACCC as part of its decision on 4 August 2023, but the Australian Competition Tribunal ultimately concluded it would not be likely to have the effect of substantially lessening competition. As the ACCC has since publicly acknowledged, the Tribunal's decision demonstrates the checks and balances of an administrative merger approval process.
I also took into account the unique features of this proposal, including the fact that Suncorp is one of the few remaining combined bank and insurance companies in Australia. The proposal will allow Suncorp to focus on its insurance businesses at a time when the sector faces a range of specific challenges, including access and affordability.
The acquisition has been proposed at a time of significant change in the banking sector, including growing competition from and opportunities in digital banking, and concerns about access to banking services particularly in regional and remote communities.
To ensure the transaction is in the national interest, I have decided to approve this proposal subject to strict conditions.
The conditions I have imposed are legally‑binding and ensure Australians continue to have access to vital banking services, employees aren't left behind, and Queensland and Australia benefit from the transaction.
The Commonwealth's conditions prohibit regional branch closures for three years, require ANZ to make every effort to join Bank@Post, ensure no net employment losses across Australia for three years due to the transaction, and insist on proper engagement with employees and the Finance Sector Union.
The Commonwealth's conditions build on those imposed by the Queensland Government and are summarised here.
Commonwealth and Queensland conditions
The combined Commonwealth and Queensland conditions include:
Lending Commitments
- $15 billion of lending and other commitments for Queensland renewable energy projects and to support infrastructure development in preparation for the 2032 Olympic Games.
- $10 billion of new lending to support energy projects in Queensland, including bioenergy and hydrogen projects over the next decade.
- $10 billion of lending to support Queensland businesses over the next three years.
- Substantial home lending commitments in Queensland, including house lending targets of 3,000 homes and $350 million in housing‑related lending.
Presence Commitments
- No changes to the total number of Suncorp Bank branches in Queensland for at least three years.
- No regional ANZ branches closed Australia wide for three years.
- No regional Suncorp Bank branches closed Australia wide for three years.
- Arrangements with Australia Post:
- Suncorp Bank to renew its current agreement with Australia Post for the provision of Bank@Post services for a minimum of three years; and
- ANZ to make best endeavours to join Bank@Post on commercial terms for a minimum of three years.
Employment Commitments
- No net job losses across Australia in Suncorp Bank and ANZ, as a result of the transaction, for three years.
- Provide employees affected by the acquisition with specialist support and maximise opportunities for redeployment and external placement.
- Work with consumer advocates, community stakeholders, and the Finance Sector Union to minimise community concerns about the acquisition.
- Physical office for an ANZ Queensland Managing Director.
- Create a Tech Hub in Brisbane to employee at least 700 individuals for five years and at least 450 after five years.
- Enter into an agreement with Google for ANZ and Google to:
- work with Queensland universities on curriculum initiatives;
- strengthening the focus on women in technology;
- create a cloud digital leader program for ANZ Queensland employees; and
- partner on reskilling initiatives.
ANZ will be required to provide annual reports and CEO certification of its compliance with the Commonwealth's conditions, which are legally enforceable.
These conditions ensure the transaction is in Australia's national interest and are binding conditions of my approval under the FSSA.
My decision on this proposal does not prejudice or pre‑empt any decisions on possible future applications. Any future FSSA applications will be considered on their own merits in the national interest.
It is critical that Australia has a competitive, dynamic and effective banking sector.
That's why the Government has announced a review by the Council of Financial Regulators into the issues facing small and medium sized banks, measures to make it easier for consumers to get a better deal on their mortgage and savings, and a financial sector regulatory grid to make sure the standard business of regulation is carried out in a more coordinated way.
The Government is also reforming the merger approval system to make it faster, stronger, simpler, more targeted and more transparent.
I thank the parties for their constructive engagement throughout this process.
