ANZ Bank has completed its previously announced A$4.9bn ($3.18bn) acquisition of Australian financial services company Suncorp Group’s banking division Suncorp Bank.
The closing of the deal follows its approval last month from the Australian Federal Treasurer under the Financial Sector (Shareholdings) Act. Prior to this, the deal secured the Australian Competition Tribunal’s approval in February this year.
Through the acquisition, ANZ Bank aims to expedite the expansion of its retail and commercial businesses along with enhancing the geographic balance of its business in Australia.
ANZ CEO Shayne Elliott said: “This strategically important acquisition boosts our presence in Queensland, adds scale to our Retail and Commercial businesses, and means we can compete more effectively across the Australian market.
“Tomorrow we will welcome the roughly 3,000 strong Suncorp Bank team and their 1.2 million customers into the ANZ Group.”
Suncorp Group has also signed a transitional services agreement with ANZ Bank to deliver a range of services to Suncorp Bank.
Most transitional business and technology services are scheduled to be phased out within two years, with the remainder to be exited no later than five years after completion, said Suncorp Group.
For Suncorp Group, the deal will allow it to focus more on the way it offers insurance to its customers and value for shareholders.
Suncorp Group CEO Steve Johnston said: “With a heritage dating back to 1902 as the Queensland Ag Bank, Suncorp Bank has been an important part of the Suncorp Group supporting communities across both Queensland and Australia.
“I’m pleased the Bank has been handed over in good shape to ANZ, reflecting our clear strategy to improve its overall performance and risk maturity over the past four years, and I wish the team continued success in the future.”
Announced in July 2022, the transaction at that time included A$47bn ($30.5bn) of home loans with strong risk profile, A$45bn ($29.2bn) in high-quality deposits and A$11bn ($7.14bn) in commercial loans.
The deal is not expected to impact employment conditions for Suncorp Bank in Queensland for at least three years following its completion.
