ANZ announces major banking takeover | ABS-CBN
ADVERTISEMENT

Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!
ANZ announces major banking takeover
ANZ announces major banking takeover
Agence France-Presse
Published Jul 18, 2022 03:44 PM PHT

MELBOURNE, Austraila - Australian banking giant ANZ announced Monday a Aus$4.9 billion (US$3.3 billion) deal to swallow regional lender Suncorp Bank -- one of the biggest takeovers in the sector for more than a decade.
MELBOURNE, Austraila - Australian banking giant ANZ announced Monday a Aus$4.9 billion (US$3.3 billion) deal to swallow regional lender Suncorp Bank -- one of the biggest takeovers in the sector for more than a decade.
The takeover of the Queensland-based lender would push ANZ up one spot to make it the nation's third-largest mortgage provider.
The takeover of the Queensland-based lender would push ANZ up one spot to make it the nation's third-largest mortgage provider.
But critics warned the deal -- reportedly the largest in Australian banking since 2008 -- would cut competition and concentrate the power of Australia's big four banks, if regulators allow it to go ahead.
But critics warned the deal -- reportedly the largest in Australian banking since 2008 -- would cut competition and concentrate the power of Australia's big four banks, if regulators allow it to go ahead.
ANZ chief executive Shayne Elliott described it as a "cornerstone investment" and a show of confidence in Queensland.
ANZ chief executive Shayne Elliott described it as a "cornerstone investment" and a show of confidence in Queensland.
ADVERTISEMENT
"We know there will rightly be questions from government and regulators about the competition aspects of this transaction," Elliott said in a statement.
"We know there will rightly be questions from government and regulators about the competition aspects of this transaction," Elliott said in a statement.
"As the smallest of the major banks, we believe a stronger ANZ will be able to compete more effectively in Queensland offering better outcomes for customers," he added.
"As the smallest of the major banks, we believe a stronger ANZ will be able to compete more effectively in Queensland offering better outcomes for customers," he added.
Rival Queensland lender Heritage Bank's chief executive Peter Lock warned that the takeover of Suncorp Bank would "simply increase the power of the major banks in Australia".
Rival Queensland lender Heritage Bank's chief executive Peter Lock warned that the takeover of Suncorp Bank would "simply increase the power of the major banks in Australia".
ANZ said it planned to raise Aus$3.5 billion to pay for the deal by offering extra stock to existing shareholders. The balance would be financed with existing capital.
ANZ said it planned to raise Aus$3.5 billion to pay for the deal by offering extra stock to existing shareholders. The balance would be financed with existing capital.
The bank said trading in its shares in Australia and New Zealand had been suspended until Thursday to give institutional investors time to act on its offer.
The bank said trading in its shares in Australia and New Zealand had been suspended until Thursday to give institutional investors time to act on its offer.
The takeover, which is subject to approval by the Australian federal treasurer and competition regulators, was expected to be wrapped up in the second half of 2023, it said.
The takeover, which is subject to approval by the Australian federal treasurer and competition regulators, was expected to be wrapped up in the second half of 2023, it said.
RELATED VIDEO:
ADVERTISEMENT
ADVERTISEMENT