Australian competition regulator rejects A$4.9 billion ANZ-Suncorp deal

AUSTRALIA’S competition regulator said on Friday it had denied authorisation for ANZ Group Holdings to proceed with its proposed A$4.9 billion (S$4.3 billion) acquisition of Suncorp Group’s banking arm.

The Australian Competition and Consumer Commission (ACCC) said it was not satisfied that the acquisition would not likely lessen competition in the supply of home loans to Australian customers.

“Evidence we obtained strongly indicates that the major banks consider the second-tier banks to be a competitive threat,” ACCC Deputy Chair Mick Keogh said in a statement.

Keogh said the proposed acquisition would further “entrench an oligopoly” structure, with the country’s four major banks dominating. REUTERS