ACCC doubles down on doubts over synergies in ANZ-Suncorp deal
In the Federal Court on Thursday the competition regulator got its chance to defend its earlier decision to block ANZ's acquisition of Suncorp Bank.
Australia's competition regulator has heard every argument in the book in favour of a merger transaction, and its experience has made it inherently sceptical of the claims made by companies to support their deals.
This rose to the fore in the penultimate day of ANZ's bid to convince the Australian Competition Tribunal to support its play for Suncorp Group's banking business, when the Australian Competition and Consumer Commission (ACCC) got its chance to defend its earlier decision to block the deal.
Barrister Garry Rich SC, acting for the Australian Competition & Consumer Commission, said the regulator is doubtful of touted cost savings - or 'synergies' - in mergers, a view "made good by experience of past transactions." He did not reference whether that same scepticism would apply to the ACCC's counterfactual that Bendigo & Adelaide Bank was an alternative buyer to ANZ.
"We accept ANZ’s followed a detailed process and made a best estimate," Rich told the three-person Tribunal reviewing the deal.
