The Australian Competition Tribunal this morning overturned the ACCC’s rejection of ANZ’s Suncorp Bank acquisition with a complete dismantling of the competition regulator’s argument — but the deal isn’t completely over the line yet.
The $4.9 billion takeover still requires a change in Queensland legislation, which looks like a formality given government statements, and approval by the Federal Treasurer.
Nevertheless, the tribunal’s decision is significant not just for ANZ and Suncorp but for how it redefines the financial services market in Australia. It essentially gives formal recognition to the reality that banking no longer consists of geographic and clearly defined markets contested by individual institutions.
Rather, the market is increasingly digital and disintermediated, with a diverse array of competitive threats that offset any potential 'coordination' strategies by the major banks. The tribunal considered two objections by the ACCC: that it was not satisfied the acquisition would not substantially lessen competition; and even if it did lessen competition, it was not satisfied any public benefits from the deal would outweigh negative impacts for the public.
