Suncorp Bank has confirmed what will happen to its Queensland headquarters and how it will increase staff numbers in the north under a multimillion-dollar deal with the government to smooth the path toward its high-stakes merger with ANZ.
The ACCC today put a spanner in the works for the ANZ’s proposed $4.9 billion takeover of Suncorp’s banking division.
The ACCC said it will seek further comment on issues including the extent to which the takeover will impact lending rates, deposit rates, fees and charges, consumer choice, service levels, and innovation.
The deal comes after ANZ made an audacious bid in 2022 to buy the banking arm of Suncorp for $4.9 billion, with Treasurer Cameron Dick declaring the outcome of negotiations would set a “benchmark for future agreements of its kind”.
The “package of benefits” struck between Suncorp, ANZ and the government include certainty that Suncorp will keep its headquarters in Queensland while pumping $2 million into establishing a regional hub in Townsville, creating 120 new jobs.
There is also $19m to establish a Disaster Response Centre of Excellence in Brisbane, which includes investment in a new technology platform to better understand weather impacts and communicate with customers and affected communities.
The Suncorp building in Brisbane’s CBD. Picture: David Clark Photography
Another $3m will be spent on First Nations employment pathways as well as building skills in disaster resilience and emergency management.
This comes on top of previously announced commitments such as a new Tech Hub in Brisbane, which will support 700 jobs.
The state government is a key player in the deal between Suncorp and ANZ due to decades old laws put in place when the state-owned insurance arm merged with ASX-listed Metway Bank in 1996.
Queensland Treasurer Cameron Dick. Picture: NCA NewsWire/Tertius Pickard
The Queensland-centric laws require Suncorp’s managing director to reside in the state, where the company’s headquarters must also be.
Mr Dick said the government had been clear from the beginning that it would only support the deal if it “was good for Queensland”.
“The commitments we’ve been able to secure from both Suncorp and ANZ ensure that the number of skilled jobs in our state’s financial services sector will only grow, not just in the southeast, but in regional Queensland as well,” he said. “This outcome sets a benchmark for future agreements of this kind.”
Suncorp Bank has announced its 13,000 employees will now be able to access six weeks of “gender affirmation leave” if they wish to transition.
Up to 12 months of unpaid leave will also be on offer – allowing time to undergo surgery, inform friends and family of their identity change, and change legal documents.
Gender affirmation leave is also being offered to ANZ, ABC and SBS employees.
Mr Dick’s strong endorsement of the deal is expected to help Suncorp and ANZ as it navigates the bumpy path through the Australian Competition and Consumer Commission, which is expected to make a decision in July on whether the merger is allowed.
The ACCC, in its preliminary statement, called for stakeholders to give their views on whether the merger would “have any public benefits”.
The proposed merger is expected to be complete in the second half of 2023.