Federal Treasurer Jim Chalmers has approved the sale of Suncorp’s banking business to ANZ, clearing one of the last remaining hurdles for the $4.9 billion deal.

Suncorp and ANZ now aim to complete the transaction at the end of next month.

The sale, announced in July 2022, has been contingent on conditions including approval from the Treasurer, competition clearance and Queensland legislative amendments.

Dr Chalmers’ announcement today follows the Australian Competition Tribunal’s decision to authorise the acquisition in February and the passage of the State Financial Institutions and Metway Merger Amendment Bill in the Queensland parliament earlier this month.

The Treasurer says his decision follows “careful consideration, much deliberation and consultation, and a long and thorough process”.

He says he took seriously concerns raised by the Australian Competition and Consumer Commission when it moved to block the deal last August. That decision was overturned after Suncorp and ANZ appealed to the Competition Tribunal.

“I also took into account the unique features of this proposal, including the fact that Suncorp is one of the few remaining combined bank and insurance companies in Australia,” Dr Chalmers said. “The proposal will allow Suncorp to focus on its insurance businesses at a time when the sector faces a range of specific challenges, including access and affordability.”

Suncorp Group CEO Steve Johnston says the Treasurer’s decision is an important step towards the company becoming a dedicated trans-Tasman insurer.

“Following completion, Suncorp will focus on meeting the evolving needs of insurance customers and addressing increasingly complex challenges such as climate change and affordability,” Mr Johnston said.

“This decision also brings us another step closer to the delivery of the jobs and investment package Suncorp agreed with the Queensland government as part of the sale process, with benefits not only for Queensland but across Australia and New Zealand more broadly.”

He says given the conditions attached to the approval, Suncorp has agreed to waive the $10 million-a-year brand licence fee ANZ was to pay for five years. 

Dr Chalmers says to ensure the transaction is in the national interest, he has approved the deal subject to “strict” conditions. These include no changes to the number of Suncorp bank branches in Queensland for at least three years and no net job losses because of the transaction for three years across Australia at Suncorp bank and ANZ. 

“The conditions I have imposed are legally binding and ensure Australians continue to have access to vital banking services, employees aren’t left behind, and Queensland and Australia benefit from the transaction,” Dr Chalmers said.