Australia & New Zealand Banking Group Ltd. (ANZ.AX,ANZBY.PK) Monday said it has signed a share sale and purchase agreement with Suncorp Group to buy Suncorp Bank for $4.9 billion in cash.
Separately, ANZ confirmed that it has withdrawn from discussions with Kohlberg Kravis Roberts & Co. (KKR) about a potential acquisition of MYOB.
In addition, ANZ said its third-quarter revenue was up 5%, or 6% FX-adjusted, with strong lending and margin momentum across all major businesses. Deposits were flat excluding FX impacts.
The Group Net Interest Margin or NIM increased 3bps for the quarter and underlying NIM was up 6bps to 164bps.
ANZ also announced that its securities will be placed in trading halt at its request, pending it releasing an announcement regarding the outcome of the institutional component of its accelerated entitlement offer.
Unless ASX decides otherwise, the securities will remain in trading halt until the commencement of normal trading on Thursday, July 21.
Regarding the Suncorp deal, ANZ said the deal is expected to be earnings per share neutral pre synergies on a pro forma fiscal 2023 basis, and low single digit earnings per share accretive including full run-rate synergies on a pro-forma FY23 basis.
With the acquisition, ANZ expects to accelerate the growth of its retail and commercial businesses while also improving the geographic balance of its business in Australia.
The acquisition is subject to a minimum completion period of 12 months and to certain conditions. Completion is expected in the second half of calendar year 2023.
Suncorp separately said its insurance operations in both Australia and New Zealand will not form part of the deal, and its head office will continue to be in Queensland.
Suncorp Bank will continue to operate under its brand pursuant to a licensing agreement between ANZ and Suncorp Group for a period of 5 years post completion.
Suncorp Bank will continue to be led by CEO Clive van Horen who will report to ANZ’s Chief Executive Officer and join ANZ’s Executive Committee post completion.
Source: Read Full Article