Suncorp 'not fit' to grow

Ian Rogers

Louise Higgins, head of Suncorp Integration

ANZ is digging deep to push its proposed acquisition of Suncorp Bank over the line, with the ACCC due to make its ruling on the merger by next month.
 
Late yesterday, the ACCC published a cache of fresh submissions from ANZ, responding to the ACCC’s recent ‘preliminary statement of views’.
 
Adopting more strident language, ANZ told the ACCC: “Suncorp Bank is a relatively small competitor. There is no evidence to support any conclusion that it is a particularly unique, effective or vigorous competitor.” 
 
“Suncorp Bank does not stand out from other banks.”
 
Asked to comment on whether a hypothetical alternative buyer of Suncorp Bank – such as Bendigo and Adelaide Bank – would face the same costs and challenges as ANZ, Louise Higgins, the head of the Suncorp Bank integration office, was unequivocal.
 
“In my view, the likely costs for Bendigo to integrate Suncorp Bank in a manner that does not destroy value, would be at least the same as for ANZ,” Higgins said.
 
Higgins went on to reflect on Bendigo’s IT arrangements: “My understanding, based on public reporting, is that Bendigo has historically underinvested in its technology estate and that its technology is less advanced than ANZ’s.
 
“To integrate Suncorp Bank effectively, Bendigo would need to make very substantial investments, to create a platform that can accommodate almost twice as many customers as it has today.”