ANZ shares tumble despite Suncorp Bank takeover approval

The Australian Competition Tribunal has finally given the deal the thumbs up.

| More on:
A surprised man sits at his desk in his study staring at his computer screen with his hands up.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ANZ Group Holdings Ltd (ASX: ANZ) shares are falling on Tuesday.

In morning trade, the banking giant's shares are down 2% to $27.96.

As a comparison, the rest of the big four banks are pushing higher in early trade.

Why are ANZ shares falling?

Investors have been selling the bank's shares today after the Australian Competition Tribunal approved its acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN).

As a reminder, ANZ agreed a deal with Suncorp to buy its banking business for $4.9 billion. It was blocked on competition fears by the ACCC, but this decision has now been overturned, paving the way for the deal to complete.

Though, judging by its share price performance today, it seems that not everyone is keen on the deal.

'Significant milestone'

ANZ was pleased with the news and has released a brief response to the approval this morning.

The bank's Chief Executive Officer, Shayne Elliott, described the approval as a significant milestone. Though, he also points out that there's still work to be done before completion. Elliott said:

This is a significant milestone and an important step forward in the process, however we still have further conditions to meet. We remain committed to completing the acquisition as soon as possible once all sale conditions are met.

Elliott also reminded shareholders why the bank is so keen to make the acquisition. He adds:

Suncorp Bank is a high-quality business with a strong team and excellent customer base, and we look forward to bringing them access to the best of ANZ, including our platforms and technology. We strongly believe that the acquisition presents significant opportunities for ANZ, Suncorp Bank and our customers, as well as major public benefits including for Queensland.

Completion of the acquisition remains subject to legislative amendments by the Queensland Parliament and approval by the Federal Treasurer.

Suncorp shares are up almost 6% in morning trade.

Motley Fool contributor James Mickleboro 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.

More on Bank Shares

Bank building with the word bank in gold.
Bank Shares

What happened with the big 4 ASX 200 bank shares this week?

Here’s why the ASX 200 bank shares caught my attention this week.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Bank Shares

Do the dividends from ANZ shares still come fully franked?

Is ANZ becoming a big four bank that doesn't frank its dividends?

Read more »

A man looking at his laptop and thinking.
Bank Shares

Are Westpac shares undervalued by the market?

This leading broker has given its verdict on the banking giant.

Read more »

Business women working from home with stock market chart showing per cent change on her laptop screen.
Bank Shares

NAB shares push higher on leadership changes

This banking giant just announced a number of executive changes.

Read more »

Young woman using computer laptop with hand on chin thinking about question, pensive expression.
Bank Shares

Do CBA shares even pay a good dividend anymore?

CBA's share price success has come at the expense of its dividend yield.

Read more »

A businesswoman holding a briefcase rests her head against the glass wall of a city building, she's not having a good day.
Bank Shares

This ASX 200 bank share could drop 20%!

Goldman Sachs is feeling bearish about this bank stock.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Bank Shares

Do Westpac dividends still beat money in a term deposit?

Term deposits are a lot closer to dividend returns than they used to be...

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

Why this expert expects CBA shares will capitalise on AI

CBA could get an ongoing boost from its leading adoption of AI.

Read more »