Suncorp cuts a deal with State over $5 billion banking takeover
Suncorp has promised a $25 million package that included jobs guarantees, a disaster response centre, and regional hub in Townsville as part of winning the approval from the State Government for the $5 billion merger with ANZ of its banking business.
The ACCC has killed off a Suncorp Bank merger with ANZ (AAP Image/Dave Hunt)
The trade-off from the State Government was for amendments to State Financial Institutions and Metway Merger Act which had meant that the banking headquarters remained in Queensland. Under the amendments, the headquarters requirement would be retained but for the Suncorp Group.
Under the deal, ANZ and Suncorp have agreed that aggregate employment levels for the Suncorp’s insurance business and corporate services would be higher in Queensland than in any other state.
A $19 million disaster response centre would be established in Suncorp’s Brisbane headquarters with an additional 20 fulltime jobs.
There would also be a Suncorp regional hub in Townsville employing about 120 people.
The planned takeover by ANZ has yet to get approval from the competition regulator, the ACCC, which has raised concerns about the impact on competition. ANZ and Suncorp have said they believed they had addressed those concerns. The ACCC was expected to make its determination on July 28.
Suncorp chief executive Steve Johnston said the agreement was a positive step towards the company becoming a dedicated trans-Tasman insurer at a time when the value of insurance and the need for a vibrant and sustainable insurance sector had never been greater.
“Suncorp’s ability to meet the rapidly changing needs of insurance customers, address increasingly complex challenges, such as climate change and affordability, and to be at the forefront of advocating for a more resilient Australia will be significantly strengthened through dedicated investment as a pure play insurance company,” he said.
The expected finalisation of the takeover was for the second half of this year.
Treasurer Cameron Dick said it had been his clear intention since the merger was announced that the Government would only support it if it was good for Queensland.
“The commitments we have been able to secure from both Suncorp and ANZ ensure that the number of skilled jobs in our state’s financial services sector will continue to grow, not just in the south east but in regional Queensland as well,” he said.
“This outcome sets a benchmark for future agreements of this kind.”
