The Australian Competition Tribunal (Tribunal) has granted authorisation for ANZ’s proposed acquisition of Suncorp Bank. In doing so, it set aside the Australian Competition and Consumer Commission’s (ACCC) decision to reject the acquisition last year. Matt Krog and Tim Eyears discuss further.
The Tribunal’s Reasoning for Overruling ACCC’s Decision
The ACCC’s decision not to grant authorisation for the proposed acquisition was based on its concern that the transaction would result in a substantial lessening of competition and ‘further entrench an oligopoly market structure that is dominated by the four major banks’. Following the ACCC’s decision, ANZ and Suncorp Bank appealed to the Tribunal for a review of the decision. In determining whether to grant authorisation for the acquisition, the Tribunal considered the authorisation preconditions outlined in section 90(7) of the Competition and Consumer Act 2010 (Cth) (Act). Specifically, it assessed whether the acquisition would:
In applying the Competition Test, the Tribunal determined that the acquisition would not substantially lessen competition in the national home loans market, Queensland agribusiness market or Queensland small-to-medium enterprise market. In considering the Public Benefits Test, the Tribunal found (among other things) that:
In finding that these tests were satisfied, the Tribunal granted authorisation for the acquisition under sections 88(1) and 102(1) of the Act.
Similar Cases
Despite the complications surrounding ANZ’s acquisition of Suncorp Bank, mergers and acquisitions are common throughout the banking industry. Recent examples include Westpac’s proposed acquisition of health payment provider, Healthpoint, which was approved by the ACCC in late February 2024, and NAB’s proposed acquisition of Citigroup Australia Pty Ltd’s Australian consumer business in 2021.