Australia's Suncorp falls after regulator blocks ANZ-Suncorp bank deal
04/08/2023 03:25
(Adds Citi comments, weekly move)
** Shares of Suncorp SUN.AX fall as much as 3.4% to
A$13.56, set to lose most since March 20, if trend holds
** Australia's competition regulator blocks $3.2 bln buyout
planned by ANZ Group ANZ.AX of Suncorp's banking arm
** Regulator says acquisition could worsen competition in
the sector
** SUN and ANZ say they would seek a review at the
Australian Competition Tribunal, an offshoot of the federal
court which oversees takeover rulings
** Analysts at Citi say the ANZ-SUN deal could have a
stronger chance of being approved by Australian Competition
Tribunal, whereby the sale will be delayed for another 6-9
months to around mid-2024
** Expects ACCC verdict will likely delay any Suncorp plans
for a capital return
** SUN hits lowest level since March 20; down 2% in the week
so far after a 3-week winning streak
** ANZ, however, gains as much as 1.6% to A$25.67 on Friday
** SUN up 16.6% this year, as of last close
(Reporting by Navya Mittal in Bengaluru)
((navya.mittal@thomsonreuters.com))