ANZ has agreed to acquire Suncorp Bank from Suncorp Group for $4.9 billion, in a move that will accelerate the growth of its retail and commercial businesses.
The bank will continue to operate under the Suncorp Bank brand pursuant to a licensing agreement between ANZ and the group for five to seven years and will maintain its current branch footprint in Queensland for at least three years post-completion. It will also continue to be led by current CEO Clive van Horen, who will join ANZ’s executive committee post-completion.
ANZ CEO Shayne Elliott said the acquisition will be a “cornerstone investment” for ANZ and “a vote of confidence in the future of Queensland.”
“We know there will rightly be questions from government and regulators about the competition aspects of this transaction,” Elliot said. “As the smallest of the major banks, we believe a stronger ANZ will be able to compete more effectively in Queensland offering better outcomes for customers.”
As part of the deal, ANZ has also committed to making a meaningful contribution to the economic and social prosperity of Queensland by allocating:
- $15 billion of new lending as part of ANZ’s existing renewable lending commitments to support Queensland renewable projects and green Olympic Games infrastructure over the next decade
- $10 billion of new lending for energy projects, particularly those targeting bioenergy and hydrogen, over the next decade
- $10 billion of lending made available to support Queensland businesses over the next three years
“While we already play a key role in supporting Queensland customers, particularly those exporting goods overseas, we recognise our role in assisting the state as it transitions to a lower-carbon future,” Elliot said. “This is a key reason why we have set aside $15 billion of new lending to support the government’s ambition of 50% renewable energy by 2030 and green infrastructure for the 2032 Olympic Games.”
ANZ has also announced a fully underwritten pro rata accelerated renounceable entitlement offer to raise some $3.5 billion of ANZ shares to help fund the acquisition.
The acquisition is subject to a minimum completion period of 12 months and to certain conditions, with the deal expected to be wrapped up in the second half of calendar year 2023.
