The state government will intervene in support of the $4.9 billion deal, which the ACCC rejected in August
Australia's competition tribunal has granted permission for the Queensland government to intervene in support of the ANZ-Suncorp merger, a deal worth $4.9 billion.
The decision by the tribunal's deputy president, Justice John Halley, allows the state government to make written submissions on "public interest" grounds during the upcoming hearing that will determine the fate of the contested merger, according to a report by The Australian.
The Queensland government's involvement could be crucial as the tribunal assesses the validity of the Australian Competition and Consumer Commission's rejection of the deal and whether ANZ and Suncorp should be allowed to appeal.
Halley stated during a directions hearing that the state government could provide written support for the merger, which promises to inject $35 billion into the Queensland economy through additional lending capacity, The Australian reported.
In an affidavit submitted by the government, it was revealed that ANZ and Suncorp had made several "binding employment, financial, and investment commitments" that would take effect after the completion of the merger.
These commitments include ensuring that the majority of Suncorp's insurance employees remain in Queensland for at least the next decade, as well as ANZ's undertaking to allocate $15 billion towards new lending for "green" Olympic Games infrastructure and renewable projects.
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The affidavit said that the negotiations for these commitments took place over a seven-month period between Queensland Treasury officials and the banks following the announcement of the merger in 2022.
In addition to the $15 billion earmarked for the green Olympics, ANZ has committed to providing $20 billion in lending for small and medium-sized businesses, as well as energy projects like hydrogen and bioenergy, according to The Australian. The provision of new lending will be subject to ANZ's credit and risk assessments of borrowers, competition from other lenders, and regulatory requirements.
The ACCC's decision in August to block the ANZ-Suncorp merger sparked political controversy in Queensland, with some perceiving it as an imposition by regulators based in southern Australia who did not fully understand the needs of a regionally diverse state.
ANZ currently holds 13.02% of the home loan market in Australia, while Suncorp's market share stands at 2.39%. Queensland also has other regional banks such as Heritage, Auswide, BOQ, and Great Southern Bank.
The competition watchdog concluded that it was not convinced the merger was in the public interest and that it would not substantially reduce competition in the national home loan supply, small to medium-enterprise banking in Queensland, and agribusiness banking in the state.
Suncorp's decision to divest its banking business to ANZ was part of its long-term strategy to focus solely on insurance, as it deemed its banking operations too small to compete against the country's major banks.
ANZ's CEO, Shayne Elliott, expressed confidence earlier this year that the acquisition of Suncorp would result in a combined bank that is better equipped to respond to competitive pressures, The Australian reported. He emphasised the benefits for Australian consumers and the significant advantages, particularly in Queensland.
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