(Bloomberg) -- ANZ Group Holdings Ltd. won its fight to overturn a competition watchdog decision to block its A$4.9 billion ($3.2 billion) purchase of Suncorp Group Ltd.’s banking arm.

Most Read from Bloomberg

Largest Covid Vaccine Study Yet Finds Links to Health Conditions Capital One to Buy Discover Financial in $35 Billion Stock Deal Wall Street’s Moelis Bet Big on the Middle East. Now He’s Cashing In Stocks Pause Near Record as Traders Await Catalyst: Markets Wrap Amazon Deserves to Be Called Out for Swindling Users

The Australian Competition Tribunal announced its decision in the Federal Court in Sydney on Tuesday. It will now require final approval from the Queensland state government and Treasurer Jim Chalmers.

“This is a significant milestone and an important step forward in the process, however we still have further conditions to meet,” ANZ Chief Executive Officer Shayne Elliott said in a statement. “We strongly believe that the acquisition presents significant opportunities for ANZ, Suncorp Bank and our customers, as well as major public benefits including for Queensland.”

Suncorp shares were up as much as 5.7% Tuesday morning.

E&P Capital banking analyst Azib Khan said the acquisition’s completion was expected to weigh on ANZ’s relative share price performance.

“We also believe the acquisition will add to ANZ’s cost challenges and that the acquisition will not significantly shift the dial in terms of ANZ’s capital allocation,” he wrote in a note.

National Interest

The Australian Competition and Consumer Commission had rejected the deal in August after ANZ had attempted to buy Suncorp’s bank in 2022 as part of plans to expand its retail banking franchise.

The ACCC and Bendigo Bank, which also opposed the merger, said the acquisition would reduce competition in the home loan market by making it easier for the major banks to engage in successful coordination.

The tribunal said the move wouldn’t substantially lessen competition as conditions for coordination had reduced — and were likely to continue due to material asymmetry in the market shares of the major banks. The body was also satisfied the proposed acquisition represented a net public benefit, as any detriments arising from a reduction in competition were unlikely to outweigh integration and productive efficiencies forecast to arise.



“The emergence of Macquarie as a maverick in the market and the increasing use of brokers has reduced consumer-choice frictions facilitating greater customer switching,” Justice John Halley said when delivering the ruling, broadcast live on YouTube.

Still, Treasurer Chalmers said a decision over final approval would be announced in due course.

“I will carefully and methodically consider whether the proposed acquisition is in the national interest,” he said in a statement.

Applicants and other interested parties can seek a review by applying to the Federal Court.

--With assistance from Tim Smith, Sarah Gill and Georgina McKay.

(Updates with ANZ CEO, tribunal comments from paragraph 3.)

Most Read from Bloomberg Businessweek

How Paramount Became a Cautionary Tale of the Streaming Wars How Uber Beat the Skeptics and Became Profitable Today’s Satellite Boom Was Foretold in Busts of Yesteryear What’s Really Behind Tesla’s Slowdown ‘Playing God’: This Labor Activist’s Relentless Emails Force Companies to Change

©2024 Bloomberg L.P.