ANZ nears $3.81b deal for Suncorp’s banking unit

Bloomberg

Australia & New Zealand Banking group is nearing a deal to acquire Suncorp group Ltd.’s banking operations as it seeks to add customer growth, according to people familiar with the matter.
An announcement could be made as soon as this week and the lender will seek to tap equity markets with a share sale to help fund the potential takeover, said the people, who asked not to be named as the matter remained confidential. A deal could value the smaller Brisbane-based business at close to A$5.6 billion ($3.81 billion), one of the people said.
Adding Suncorp’s banking assets would be another step to bolster customer growth by ANZ, which confirmed last week it is also discussing the purchase of MYOB Group Ltd. an Australian accounting software business.
There is no certainty ANZ and Suncorp will agree to a deal and talks could still fall apart, the people said. Representatives for ANZ and Suncorp declined to comment.
Suncorp confirmed last month it was reviewing strategic alternatives for its banking operations. Banking and wealth accounted for 14% of full-year revenue in fiscal 2021, down on the previous 12 months, according to data compiled by Bloomberg.
The unit is an attractive target for other lenders because of its higher exposure than most Australian peers to retail customers and to Queensland state, Bloomberg Intelligence analysts Matt Ingram and Jack Baxter wrote last month. Selling the unit to become a pure-play insurer would boost Suncorp’s profitability, they said.