ANZ shares dip as watchdog postpones verdict on Suncorp deal

The big four bank first reported its intent to acquire Suncorp's banking segment in July 2022.

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Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares have dipped into the red, after kicking off the day slightly into the green.

The S&P/ASX 200 Index (ASX: XJO) bank stock closed Friday trading for $25.16. In afternoon trade today, shares are swapping hands for $25.10 apiece, down 0.24%.

Here's what ASX 200 investors are considering today.

A business dog with glasses and tie in front of some graphs pinned to wall.

Image source: Getty Images

Will ANZ shares ever incorporate Suncorp's banking assets?

ANZ shares are down in intraday trade amid news that the big four bank's long-awaited acquisition of the banking segment of Suncorp Group Ltd (ASX: SUN) will remain in limbo for a while longer.

The Australian Competition and Consumer Commission (ACCC) was meant to deliver its decision on the proposed $4.9 billion merger with Suncorp Bank by 28 July.

But, as Suncorp reported earlier today, the watchdog has requested an extension of the review period, potentially pushing the decision back to 4 August.

This is the ACCC's second delay, with the regulator initially intending to announce its decision by 12 June.

ANZ shares rallied when the big four bank first reported its intent to acquire Suncorp Bank on 18 July 2022. Its merger authorisation application was delivered to the ACCC on 2 December.

Among the factors influencing the outcome, the corporate regulator has said it "must be satisfied that either the transaction will not be likely to substantially lessen competition, or that the public benefits outweigh the public detriments".

And that appears to be the big hold-up here.

Both ANZ and Suncorp maintain the merger will not impact competition in the banking space and will in fact be a benefit to the public. But numerous regional banks aren't in agreement.

With the big four banks already controlling the lion's share of mortgage lending, the ACCC will need to be satisfied that competition won't be further impacted.

As for whether ANZ shares will incorporate Suncorp Bank by the end of the year, as the bank initially hoped, we'll have to wait at least another week to find out.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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