Former competition tsar Allan Fels says ANZ Bank’s bid to swallow Suncorp’s banking arm will be a key test for new Australian Competition and Consumer Commission chairman Gina Cass-Gotlieb, as debate over the deal heats up.
This includes approval from federal Treasurer Jim Chalmers, the Australian Competition and Consumer Commission , and it will require amendments to Queensland legislation, which currently requires Suncorp’s head office and senior executives to be located in Queensland. “An issue is whether the four banks compete strongly against one another these days with the result that the removal of a fifth player may not make much difference. But the traditional view is that an extra regional bank has made considerable difference to competition,” he said.“As an objective decision maker, it’s not a simple decision. From a public point of view, they may form the oversimplified view that she’s pro or anti-bank depending on the decision.
However, Bendigo and Adelaide Bank chief executive Marnie Baker said the potential transaction would further entrench Australia’s banking oligopoly. Instead, she said a merger between Suncorp Bank and Bendigo and Adelaide Bank would deliver better competition and community benefit. However, he added the estimated $680 million in integration costs were surprisingly high, partly because of ANZ’s plan to run Suncorp independently for three years before merging it with ANZ’s other operations.
A number of factors created uncertainty for investors, they said, including competition and regulatory scrutiny.