ACCC delivers blow to ANZ-Suncorp merger bid

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The ACCC is unconvinced that ANZ’s tie-up with Suncorp makes sense for competition, noting huge hurdles for new players still exist.

The Australian Competition and Consumer Commission is unconvinced by ANZ’s claims that merging with Suncorp Bank, extending the date for submissions detailing the broader competitive landscape in banking.

A heavily redacted submission from Bendigo Bank’s head of mergers and acquisitions, Cameron Stewart, argued “in my view, Bendigo was ready to engage with Suncorp Group should it have been given the opportunity” and that he believed his bank “would have been in a position to make a competitive offer for Bendigo relatively quickly”.

“We are seeking comment on issues including the extent to which it will impact lending rates, deposit rates, fees and charges, consumer choice, service levels, and innovation,” the deputy chairman said. “Judo Bank is the only neobank to have materially challenged the incumbent second-tier banks through its SME focused offering,” the ACCC said.

The ACCC noted Judo’s points that “the major banks generally have access to cheaper wholesale funding than the smaller banks – lower funding costs further enable them to entrench their competitive advantages”.

 

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