A very important decision for consumers, mostly in Queensland.
The ACCC was not convinced the intended merger would serve the best interests of consumers -
The Australian Competition and Consumer Commission said on Friday the proposed acquisition would “further entrench an oligopoly” in a sector already dominated by the four major banks.
In difference to a finance expert?
…. the ANZ chief executive, Shayne Elliott, said
“We believe the acquisition will improve competition, which will benefit Australian consumers, particularly in Queensland.
ANZ and Suncorp are noted for recent branch closures and service loss across Qld.
How deals are done.
The Suncorp Group CEO, Steve Johnston, said if the deal wasn’t consummated the public wouldn’t reap the benefits of a significant jobs and investment package that ANZ and Suncorp negotiated with the Queensland government in exchange for its approval.
Should consumers be cynical? When it comes to such offers once the corporate deal is done, changed circumstances!
I think big business wants to rule and for once they are being told that they not allowed to just do what they want. Maybe times are different good decision to not allow merger
I doubt us average consumers know about the appeal process or how it works. The Australian Competition Tribunal will be the body to which the appeal is made. Notably it has the power to overturn ACCC decisions.
Is it a desktop exercise? Is the Tribunal bound to put consumer interests ahead of business, or those of consumers in one state over the greater benefit to ANZ nationally? Is it an acceptable outcome if the tribunal overrules the ACCC?
Should the average consumer expect the ACCC is adequately resourced to ensure it’s decisions are sound and can withstand independent legal scrutiny?
Does the Treasurer of the GoA have the final say?
The full decision of the ACCC blocking the merger will be released on Monday 7Aug. Until then the ACCC has released the following shorter statement. For any interested in why the merger works against consumer interests.
In my view this was a lazy way of ANZ trying to gain increased market share in banking against its bigger three other main banks.
Whilst the ACCC relaxed the competition rules during the GFC in 2007/2008 and allowed some big four banks to take over second tier banks as a better alternative to possible failures, that is not the situation now.
We have seen St George, Westpac and Bank of Melb all merged in Victoria - As a Bank of Melb customer of many years, I have seen a HUGE and IMMEDIATE change in the way BOM services clients straight after the merging. It no longer had a “local perspective” and almost all the policies changed. If I wanted to be a Westpac customer, I would have opened a Westpac Account… I am sure the QLD people will see a similar change if ANZ takes over Suncorp…
Seems that from the final determination from the ACCC, that there were two main drivers for this ‘merger’.
First, Suncorp wanted to divest itself of banking to concentrate on insurance. Offload 1.2 million customers to someone else, for cash.
Second, a willing buyer in ANZ, the smallest of the big four, wanted to buy 1.2 million banking customers to increase market share rather than take the effort to build up customers by competing and organic growth.
ACCC saw it for what it was.
Perhaps Suncorp will have better success with ‘merging’ with another second tier bank like Bendigo, or Bank of Adelaide, who no doubt would love to get a bigger presence in QLD.
Australia’s banking landscape is dominated by the Commonwealth which leaves all behind in its wake. The next 4 by size are a more even match NAB, Westpac, ANZ in order with Macquarie (not the average consumers bank) hot on their heels.
The rest led by Suncorp are lost in the dust. Their relative strength is a local focus. Speculatively they pick up the crumbs and fill the gaps the big 4+1 choose not to service on less profitable terms. Open to speculate if the ability to deliver service and share values across state borders is a winner.
ANZ have closed the local branch in our country town, so now businesses have to drive one hour to north, south or west to find the ANZ branch. This means that businesses carry much more cash on premises and thus bigger targets for theives. NAB also closed their branch in our town several months after ANZ, so we are left with The Australian Post Office. Thank goodness they are privately owned but they still have to toe the line of the Australia Post dictates in stock on hand. Banks are no longer pillars of business; they are the pariahs of business.
How may lawyers does it take to make a roast dinner?
Allowing for due process better to ask how many days to prepare the brief, assign the roles and appoint a qualified judge. No doubt as the perfect roast is due to emerge tender medium rare from the oven the deliberation on how done is likely to see it well done or burnt to cinders. Politely one could suggest when in company of others those of legal mind prefer to eat out and leave the rest to someone who knows about cooking a good roast. / depending on life experience.
Hopefully the members of the tribunal took wise counsel on matters of competition in the banking sector. Likely not of the same mind as those consulted by the ACCC on behalf of consumer interest.
depending on life experience.