Australia’s ANZ, Suncorp overcome objection to major merger

Australia’s ANZ and Suncorp banks jumped a big hurdle in their proposed US$3.2 billion merger Tuesday, as a tribunal overrode a consumer watchdog’s concerns.

The Australian Competition and Consumer Commission had blocked ANZ’s proposed takeover of Suncorp Bank, but the firms managed to win on appeal.

The Australian Competition Tribunal ruled that the move would not significantly harm competition.

The merger still requires endorsement from Treasurer Jim Chalmers, who promised to “carefully and methodically consider” the deal.

Suncorp’s shares rose almost six percent during trading in Sydney, while ANZ fell four percent amid reported concerns over the financial impact of the merger.

“This is a significant milestone and an important step forward in the process, however, we still have further conditions to meet,” said ANZ chief executive Shayne Elliot. (BSS/AFP)