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The Australian government announced that it had approved ANZ's request to acquire Suncorp's banking business for A$4.9 billion ($3.26 billion).

In a statement Friday (June 28), which coincided with the end of the Australian financial year, ANZ CEO Shayne Elliott said that the acquisition approval was a "significant milestone" to its plans to expand its operations and presence in Queensland.

However, public broadcaster ABC reported that even if the Australian Competition and Consumer Commission (ACCC) authorized the acquisition and secured the approval of federal treasurer Jim Chalmers, Queensland's state government has yet to approve it.

If this happens, the acquisition will commence by the end of July.

ANZ's Suncorp Acquisition Approved on 'Strict Conditions'

For his part, Chalmers told local reporters that he approved ANZ's takeover of Suncorp's banking business but on "strict conditions" such as requiring ANZ to join Bank@Post, ensure no net employment losses across the country for three years, and insist on proper engagement with employees and the Finance Sector Union, which said that the deal was a win for its members working on ANZ and Suncorp Bank but would still hold ANZ accountable to keep its side of the bargain.

ANZ was also forced to lend A$35 billion ($23.22 billion) to Queensland's renewable energy projects, among other sustainability efforts.

Whether ANZ's takeover of Suncorp Bank would lead to confusion for its customers remains to be seen.

Meanwhile, the ASX 200 opened 0.6% higher at 7808 points. ANZ's stock was also up 0.7% upon the news of its Suncorp Bank takeover.

Suncorp's shares also valued 2.8% higher due to its deal with ANZ.

Tags

Australia, Merger, Acquisition, Mergers and acquisitions, Bank