ANZ stitches deal for Suncorp banking arm
ANZ has agreed to buy Suncorp's banking business for $4.9 billion in a deal the big-four lender described as a vote of confidence in Queensland.
Under the deal, ANZ will continue operating under the Suncorp Bank brand for five years as it takes on an additional $47 billion in home loans and $45 billion in deposits.
Trading in ANZ shares was halted as the deal was announced on Monday after the bank said it would need to raise about $3.5 billion to fund the buyout.
ANZ chief executive Shayne Elliott said the announcement would see ANZ increase its presence in Queensland, one of the country's most important regions.
"The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland," he said.
There would be no job losses or changes to the number of Suncorp Bank branches in Queensland for at least three years after the deal was completed, ANZ said.
The acquisition will need to be approved by the Australian Competition and Consumer Commission and Federal Treasurer Jim Chalmers.
The Suncorp banking arm will continue to be led by current chief executive Clive van Horen, while the company's insurance operations in Australia and New Zealand were not included in the deal.
Suncorp, which owns brands such as AAMI, GIO and Shannons, said the sale of its banking arm would support the growth of its insurance business.
Suncorp chairwoman Christine McLoughlin said the agreement was designed to create value for shareholders and would enable the company to focus on its insurance operations.
"Our purpose of building futures and protecting what matters - the focus of our company for over 100 years - will remain at our core and enable our people to deliver on our vision to create the leading Trans-Tasman insurance company," she said.
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