The competition regulator in Australia expressed skepticism about ANZ proposed acquisition of a smaller competitor for A$4.9 billion ($3.32 billion), stating that it was uncertain if the deal would provide any public benefits. This news is a setback for one of the largest deals of the year.
The ACCC released a statement expressing their preliminary views that ANZ has not yet provided sufficient evidence to demonstrate that both ANZ and Suncorp would benefit from the acquisition.
The ACCC is currently reviewing ANZ’s proposed takeover of a large second-tier competitor. Feedback has been received and ANZ may need to provide further explanation regarding the public benefits of the takeover outweighing the loss of a market participant.
According to the regulator, the information given thus far was not enough to support the claimed public benefits and ANZ’s future synergy estimates.