ANZ has highlighted the advantages of Suncorp focusing solely on insurance in an application to the Australian Competition and Consumer Commission (ACCC) seeking clearance for its proposed $4.9 billion purchase of the company’s banking division.

The merger authorisation application says the deal is not likely to substantially lessen competition and will result in public benefits that outweigh any detriments.

“Selling Suncorp Bank will enable Suncorp Group to have a singular focus on the development of its insurance business at a time when Australians need financial protection from natural disasters,” ANZ says.

“Buying Suncorp Bank will enable ANZ to continue to invest in meeting evolving customer needs and play a bigger role in the continuing growth of the Queensland economy.”

The ACCC opened a public consultation on the transaction yesterday and has called for submissions by January 18.

The regulator usually has 90 days from the date of a merger authorisation application to make its decision, but the timeframe can be extended. In this case, an extension until June 12 has been agreed.

Suncorp CEO Steve Johnston says the merger application includes supporting statements from the company reinforcing its view that the sale will benefit its “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,” he said.

Mr Johnston says the ACCC’s timeline will ensure a thorough review and its length was to be expected given the significance of the transaction.

“We remain respectful of the process as the ACCC considers ANZ’s application, and the views of other interested parties, and look forward to working constructively with the regulator over the coming months,” Mr Johnston said.

Suncorp still anticipates the deal will be completed in the second half of next calendar year, subject to regulatory clearances.

Approvals are also required from the Queensland Government, in relation to the State Financial Institutions and Metway Merger Act, as well as from the Federal Treasurer.

The application says the sale will allow Suncorp to re-focus its capital investment on its insurance business and make available funding for capital improvement projects including on technology.

“Suncorp Group has a conglomerate structure and, as set out in the statement of Steve Johnston, Suncorp Group’s market valuation has mostly traded at a discount to the theoretical sum of its parts,” the document says.

“A well-capitalised business that has strong shareholder support will ultimately lead to better outcomes for customers.”

As part of the deal Suncorp has committed to setting up a Disaster Response Centre of Excellence in Brisbane, incorporating the latest technology to monitor, prepare for and respond to extreme weather and natural disasters.