Only one condition remains in order for the long-standing acquisition deal to be finalised, and it's expected to be met as early as next month, ANZ announced this morning.

ANZ's bid to takeover Queensland-based Suncorp Bank has been on the table for nearly two years now, hampered by a now-overturned denial from the competition watchdog.

After being granted the tick of approval from the treasurer on Friday morning and permission under Australian competition law earlier this year, the merger is hinged only on amendments to Queensland legislation.

Changes to the state legislation passed the Queensland Parliament earlier this month and are set to come into play shortly.

That means, all going to plan, the acquisition is expected to be completed at the end of July. 

"This is a significant milestone in our plans to expand our presence in Queensland and bring the best of ANZ to Suncorp Bank customers," ANZ CEO Shayne Elliott said.

The Suncorp Bank brand is expected to live on post-merger, with ANZ previously stating it had licenced the brand for five to seven years.

Suncorp, which will continue to offer insurance services after offloading its banking business, has agreed to waive its brand licensing fees and help cover the costs of ANZ's takeover.

"Suncorp Bank customers will continue to receive the same great service, from the same exceptional Suncorp Bank staff," Mr Elliott said.

"Over time, we'll make available to them ANZ's leading technology, giving them access to the very latest in banking services."

Other conditions attached to the approval include:

  • ANZ to maintain regional branch numbers across both its own brand and the Suncorp Bank brand for three years
  • The acquisition won't result in net job losses in Australia for three years
  • ANZ will keep putting its best efforts towards reaching an agreement with Australia Post to offer Bank@Post services

According to the latest APRA data, Suncorp Bank's loan book houses $53 billion worth of mortgages, while that of ANZ holds more than $298 billion of home loans, across both owner-occupier and investor lending.

Once merged, the ANZ-Suncorp Bank home loan book will outshine that of NAB, which holds $319 billion of housing debt.

Images courtesy of ANZ and Suncorp

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