ANZ set to acquire Suncorp bank for $4.9b

ANZ is to acquire the banking business of Suncorp for $4.9 billion, at the same time as withdrawing from discussions to acquire accounting firm MYOB.

The $4.9 billion cash sale of Suncorp, which excluded the firm’s insurance business, was expected to yield net proceeds of $4.1 billion and ANZ would also have to pay a minimum of $50 million to use the Suncorp brand over five to seven years, to be paid over time.

Suncorp would be run as a separate business to minimise disruption and maintain its Queensland focus for at least three years.

The deal was subject to regulatory approval and was expected to complete within 12 months.

Suncorp chairman, Christine McLoughlin, said: “Both businesses will benefit from a singular focus on their growth strategies and investment strategies.

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“We believe the agreed price fairly values the Bank and reflects the hard work of our people and the progress made on our strategic objectives.”

ANZ chief executive, Shayne Elliott, said: “The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland.

“We have admired the transformation that has occurred under the leadership of Steve Johnston and Clive van Horen and believe Suncorp Bank is a natural fit with ANZ given the culture, risk appetite and customer focus.”

ANZ also announced it had withdrawn from discussions with Kravis Kohlberg Roberts & Co (KKR) about acquiring accounting group MYOB which had been announced last week.