The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is off to a strong start on Tuesday, up 1.7%.
ANZ shares closed yesterday trading for $23.54 and are currently trading for $23.93 apiece.
This comes as the Australian Competition & Consumer Commission (ACCC) announced that it has begun its formal consideration of ANZ's proposed acquisition of Suncorp Bank. That's the banking segment of Suncorp Group Ltd (ASX: SUN).
The Suncorp share price is up 0.6% at the time of writing.
What's happening with the acquisition of Suncorp Bank?
The ANZ share price enjoyed a sharp lift after the banking giant initially announced its intentions to buy Suncorp Bank back on 18 July for the tidy sum of $4.9 billion.
But as Suncorp noted in a release after market close last night, the acquisition remains subject to a number of regulatory and government approvals. The merger authorisation from the ACCC would be the first step in the approval process.
The ACCC reported it had received that merger authorisation application from ANZ on Friday, 2 December.
"Now that we have received the application, we are able to commence the formal process of considering the merger authorisation application, and will be seeking submissions from interested parties," ACCC deputy chair Mick Keogh said.
According to the ACCC:
The test for merger authorisation is that the ACCC must be satisfied that either the transaction will not be likely to substantially lessen competition, or that the public benefits outweigh the public detriments.
Should the ACCC greenlight the proposal, it could offer some additional tailwinds for the ANZ share price.
Commenting on the progress, Suncorp CEO Steve Johnston said:
The application to the ACCC includes supporting statements from Suncorp reinforcing our view that the sale will benefit our customers, people, shareholders, and the state of Queensland.
The sale of Suncorp Bank will result in a dedicated Trans-Tasman insurance company at a time when the value of insurance has never been greater, and the need for continued investment in a vibrant private insurance sector never more important to meet the changing needs of customers, communities and our broader economies.
The ACCC is expected to announce its decision on 12 June 2023.
"Suncorp still anticipates completion in the second half of calendar 2023, based on the published timeline and subject to regulatory approvals," Johnston said.
ANZ share price snapshot
The ANZ share price has struggled over the past 12 months, down 12%. That trails the 2% full-year loss posted by the S&P/ASX 200 Index (ASX: XJO).
As you can see in the chart below, ANZ shares have enjoyed a much stronger run over the last six months, gaining 10%.
