“I believe there is no real commercial likelihood of an acquisition by Bendigo of Suncorp bank in the medium term, which I consider to be the next three to five years, and I … do not believe that a merger with Bendigo is in the best interests of Suncorp’s shareholders, customers or employees.”
Bendigo had previously taken a personal tack, criticising Mr Johnston’s earlier evidence as “inconsistent” with historic talks it had with Suncorp. Mr Johnston’s response in a section about “engagement with Bendigo” – whose board includes his former Suncorp colleague David Foster – is redacted.
But Suncorp also tries to skewer Bendigo’s assertion of successfully integrating acquisitions, citing multiple examples of lengthy acquisition work. One, Bendigo’s buyout of Bank of Adelaide, was “planned to be completed in fiscal year 2024, more than 15 years after the merger”.
Mr Johnston said the only alternative to the ANZ deal was the bank staying with the Suncorp group, arguing this would dampen the benefits versus operating solely as an insurer.
Suncorp also highlighted Silicon Valley Bank’s collapse as having bumped up funding costs. “These events demonstrate the speed at which a bank’s position can change,” it said, arguing one-quarter of Silicon Valley’s funding base of $42 billion evaporated in 24 hours.
It sought to alleviate any competition concerns around an enlarged ANZ, arguing Suncorp Bank was “no more vigorous” in home loans or deposits than rival banks.
The Queensland government, which would need to alter key laws to allow ANZ’s takeover, had been “constructive” so far.
Treasurer Cameron Dick said his state would not approve the ANZ takeover unless it was a “good deal” for Queenslanders. “We will consider carefully that deal before we provide our level of approval for the transaction,” Mr Dick told AFR Weekend.
Asked whether any such conditions would include stopping the closure of bank branches or ensuring that Suncorp’s insurance arm did not move to Sydney, Mr Dick replied: “All of those matters are being considered.”
Following a Financial Review right to information request, Treasury this week refused to release internal documents related to the takeover, citing cabinet confidentiality rules.