Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

ANZ (ASX:ANZ) share price in focus after ACCC rejects Suncorp (ASX:SUN) deal

The ANZ Group Holdings Ltd (ASX: ANZ) share price is under the spotlight after the ACCC blocked the deal with the Suncorp Group Ltd (ASX: SUN) banking division.

ACCC says to ANZ: No deal

ANZ had wanted to grow its market position in Australia by acquiring Suncorp Bank, but the ACCC has denied authorisation.

The ACCC isn’t meant to grant authorisation unless it’s satisfied “in all the circumstances” that the proposed acquisition would “not be likely to lessen competition, or that the likely public benefits would outweigh the likely public detriments.”

Sadly for ANZ, the ACCC wasn’t satisfied that it wouldn’t substantially lessen competition in the areas of supplying homes nationally, small to medium enterprise banking in Queensland, and agribusiness banking in Queensland.

Explanation of the denial

ACCC Deputy Chair Mick Keogh said:

These banking markets are critical for many homeowners and for Queensland businesses and farmers in-particular. Competition being lessened in these markets will lead to customers getting a worse deal.

Second-tier banks such as Suncorp Bank are important competitors against the major banks, especially because barriers to entry at scale into banking are very high. Evidence we obtained strongly indicates that the major banks consider the second-tier banks to be a competitive threat.

The proposed acquisition of Suncorp Bank by ANZ would further entrench an oligopoly market structure that is concentrated, with the four major banks dominating. It also limits the options for second-tier banks to combine and strengthen in a way that would create a greater competitive threat to the major banks.

The ACCC also noted that bank CEOs have been saying that they are stepping back from aggressive promotions, which it wouldn’t “expect to see banks publicly flagging plans to reduce the competitiveness of their offerings.”

Final thoughts on the ANZ deal

ANZ indicated to investors that it’s going to appeal against the decision through the Australian Competition Tribunal, The possible deal is also subject to additional conditions including approval from the Federal Treasurer and Queensland legislative amendments.

I don’t think ANZ needs to do this acquisition to do well, it needs to focus on its own operations, offer customers a more compelling service and gain market share.

The banking sector and the ANZ share price isn’t attractive to me, I’d rather invest in ASX dividend shares in less competitive sectors.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content