BY Richard Summerfield
Australia and New Zealand Banking Group (ANZ) has announced a $3.3bn deal to acquire the banking arm of insurer Suncorp Group.
Under the terms of the deal, ANZ will continue operating the Suncorp Bank brand for five years as it takes on an additional $47bn in home loans and $45bn in deposits.
The acquisition is subject to approval from the Australian Competition and Consumer Commission and the federal treasurer, Jim Chalmers. The deal is also subject to a minimum completion period of 12 months and to certain other conditions.
“This proposal has been assessed through the lens of creating value for shareholders and, just as importantly, to ensure there is alignment of purpose and values and positive outcomes for our people and customers,” said Christine McLoughlin, chairman of Suncorp. “Suncorp Group, which is the proud home of several of Australia and New Zealand’s leading and most trusted insurance brands including AAMI, GIO, Shannons, Apia and Vero, and of course the Suncorp brand, will continue to offer the same great service to Queenslanders.
“Both businesses will benefit from a singular focus on their growth strategies and investment requirements,” she continued. “We believe the agreed price fairly values the Bank and reflects the hard work of our people and progress made on delivering our strategic objectives. Our purpose of building futures and protecting what matters – the focus of our company for over 100 years – will remain at our core and enable our people to deliver on our vision to create the leading Trans-Tasman insurance company.”
“The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland,” said Shayne Elliott, chief executive of ANZ. “With much of the work to simplify and strengthen the bank completed, and our digital transformation well-progressed, we are now in a position to invest in and reshape our Australian business. This will result in a stronger more balanced bank for customers and shareholders.
“ANZ has licenced the Suncorp Bank brand for five to seven years and we are committed to maintaining its current branch footprint in Queensland for at least three years post completion,” he added. “This is a growth strategy for ANZ and we will continue to invest in Suncorp Bank and in Queensland for the benefit of all stakeholders.”
Going forward, Suncorp will continue to be led by its current chief executive Clive van Horen, and according to Mr Elliott there will not be any job losses at the company for at least the next three years. The company’s insurance operations in Australia and New Zealand were not included in the deal.
News: Australia's ANZ to buy Suncorp banking arm for $3.3 billion, boost mortgage business