The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is currently edging higher, up 1.47% to $8.95.
This comes as one of the company's leadership commented on the deal between Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Suncorp Group Ltd (ASX: SUN).
ANZ wants to buy the banking division of Suncorp for $4.9 billion.
For ANZ, it's trying to beef up its business so that it can better compete with its rivals Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB).
For Suncorp, it will enable the company to focus on its insurance operations.
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Bendigo Bank's view on the deal
The Bendigo Bank share price is rising amid the company holding its annual general meeting (AGM) today.
Chair Jacqueline Hey noted that the business is firmly focused on its organic growth strategy, though it does "from time to time" consider mergers and acquisitions that "will create value for shareholders and customers".
Hey said:
Whilst we do not comment on these type of activities in the normal course of business, given this one is public we do believe it's important our shareholders are fully aware that Suncorp avoided engagement with our bank – despite repeated approaches – and instead announced a transaction with a big four bank. We believe this will only further entrench Australia's banking oligopoly and provide sub-optimal outcomes for customers and communities.
Deal requires government approval
A deal this size between two S&P/ASX 200 Index (ASX: XJO) shares requires government approval.
The Queensland government is taking a close interest in the deal because of how important Suncorp is for the local economy.
While there are reports the Queensland Treasurer isn't opposed to the transaction, there was criticism from other sources.
The Australian Financial Review quoted the Finance Sector Union Queensland secretary Wendy Streets, who said:
There are currently around 40 suburbs [or] towns where there are both Suncorp and ANZ branches and we believe these ANZ's will be targeted to close during the three-year moratorium.
At the conclusion of the three-year commitment, it is our view that the savings will come from back office synergies between the two which ultimately will mean a significant amount of Queensland job losses as the work transfers to ANZ Melbourne departments.
Other highlights from the Bendigo Bank AGM
The Bendigo Bank CEO and managing director Marnie Baker noted that the current economic outlook remains complex, challenging, and "in flux".
Cash rates are starting to impact property values and the regional bank is expecting credit growth to moderate, while competition remains intense.
With that in mind, the bank will continue to focus on managing its costs, strengthening returns, future-proofing the business and improving its overall returns.
Bendigo Bank share price snapshot
Over the last month, Bendigo Bank shares have risen by close to 10%.
However, they are down almost 14% in the past six months and 4% year to date.
