Suncorp Group's (ASX: SUN) plans to offload its banking arm to ANZ (ASX: ANZ) for $4.9 billion have been foiled today after the Australian Competition and Consumer Commission (ACCC) rejected the proposal, noting it would likely lead to "customers getting a worse deal" in Queensland.
The sale agreement was announced in July 2022 as part of Suncorp's simplification strategy, and in June this year the group got the Queensland Government on side with a $25 million jobs and investment package, including at least $19 million for a Disaster Response Centre of Excellence in Brisbane and a commitment to hire 120 people at a new regional hub in Townsville. But these efforts have proven in vain for getting the transaction over the line, with the competition watchdog concluding it would further entrench an oligopoly market structure that is concentrated with the four major banks dominating, while limiting options for second-tier banks to combine and strengthen to challenge the Big Four. "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,” ACCC Deputy Chair Mick Keogh says. https://www.businessnewsaustralia.com/articles/competition-watchdog-knocks-back-anz-s--4-9-billion-takeover-of-suncorp-bank.html
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