The Australian Competition Tribunal has overturned the Australian Competition and Consumer Commission's (ACCC) previous decision to block ANZ's $4.9 billion acquisition of Suncorp Bank. 

The development comes after a protracted merger battle that has captivated the Australian financial services sector.

On 20 February 2024, the Tribunal set aside the ACCC's August 2023 decision, paving the way for ANZ to proceed with its planned acquisition. 

This decision, eagerly anticipated by industry observers, shows the complexity of merger authorisations and the nuanced perspectives different regulatory bodies can hold.

ACCC Chair Cass-Gottlieb expressed respect for the Tribunal's conclusion, stating; “In complex cases that require the assessment of significant volumes of information and data, different decision makers can reasonably arrive at different conclusions.” 

The Tribunal's review, which drew upon an exhaustive examination of evidence including around 200,000 documents and insights from compulsory executive interviews, concluded that the acquisition “would not lead to any substantive change in the structure of the market”.

The finding contrasts sharply with the ACCC's initial concerns that the merger would further cement the dominance of the major banks in Australia.

The Tribunal agreed with the ACCC on the importance of vigilance in banking markets, reflecting shared apprehensions about market concentration. However, it diverged on the potential benefits and competitive implications of the merger, suggesting a more optimistic view of competition dynamics and innovation in the banking sector.

ANZ's path to finalising the acquisition includes securing approval from Treasurer Jim Chalmers and navigating legislative adjustments in Queensland. 

Meanwhile, the ACCC has signalled its intention to continue monitoring banking market dynamics closely, as these markets are considered critical for both consumers and businesses.