Shares of Suncorp (ASX:SUN) dropped as much as 3.4% to A$13.56, on track to chalk up the biggest loss since March 20, should the current trend persist.
This comes as Australia’s competition regulator effectively roadblocked the planned $3.2 billion takeover of Suncorp’s banking division by ANZ Group (ASX:ANZ), indicating that the acquisition could potentially hamper competition within the sector.
Suncorp and ANZ have jointly stated they will seek a review of the decision from the Australian Competition Tribunal, a division of the federal court in charge of overseeing such rulings.
Analysts at Citi have speculated that the ANZ-Suncorp could have a better chance of passing muster with the Australian Competition Tribunal, albeit the conclusion might be delayed for another 6-9 months to approximately mid-2024.
The current verdict from ACCC is predicted to postpone any plans Suncorp might have had for a capital return.
Suncorp’s share price hit its lowest mark since March 20 and is down 2% so far this week, after three consecutive weeks of gains.
ANZ, on the other hand, saw a rise of up to 1.6% to A$25.67 on Friday.
As of the last closing, Suncorp’s shares have increased by 16.6% this year.
Suncorp (ASX:SUN) is a leading insurance, banking, and wealth management company based in Australia.