By Danny John
THE chief executive of ANZ, Mike Smith, delivered a broadside to the competition regulator, saying the commission’s stance against further bank mergers would not stop it from trying to buy a smaller domestic rival.
In comments that sparked renewed speculation about the ANZ’s interest in the banking arm of Suncorp, Mr Smith said yesterday he believed the role of the Australian Competition and Consumer Commission was to investigate bids when they were made rather than pre-judge them.
Referring to comments by the ACCC chairman, Graeme Samuel, that another round of consolidation would be bad for competition, the ANZ boss indicated his bank would continue to target a possible acquisition.
‘‘I thought they were there to look at deals and to make and give a view rather than pronounce on what we can and can’t do,’’ Mr Smith told an American British Chamber of Commerce lunch in Sydney.
A sale of Suncorp – which ANZ came close to buying for $2 billion last October before the Queensland group pulled the move – was already one the commission had indicated it would prefer not to happen, he said.
But such a view ‘‘won’t stop us having a go’’, added Mr Smith in a reference to any deal ANZ might put together for a regional bank.
Mr Samuel said last month that purchases of St George Bank by Westpac and of BankWest by Commonwealth had increased the big four’s grip on the market. This has been underlined by recent lending figures which show the majors have taken 90 per cent of all new home loans.
With just three listed regionals – Suncorp, Bank of Queensland and the Bendigo and Adelaide Bank – remaining, the ACCC says another takeover proposal would trigger a wide-ranging inquiry into the industry.
ANZ is considered the most likely to test the commission’s resolve given Mr Smith said yesterday his bank’s 16 per cent market share is ‘‘not really enough’’.
‘‘I think we have to bulk-up,’’ said Mr Smith, fresh from spending nearly $700 million on part of the Royal Bank of Scotland’s business in Asia this week as he seeks to expand the region’s contribution to group profits to 20 per cent by 2012.
ANZ still has $4 billion from its recent $4.7 billion capital raising to spend on acquisitions and he made clear yesterday that Australia remained in the bank’s sights, as well as deals in Asia.
However, Mr Smith sought to deflect attention from ANZ’s domestic targets, saying the regional banks played a useful role. ‘‘I think it would be a shame if they were to go,’’ he said.
Analysts said investors would scrutinise the Royal Bank of Scotland deal. The earnings performance would be judged against pursuing growth in Australia which has been the focus of recent acquisitions made by its three main competitors.