Citi predicts that the potential sale of Australia’s Suncorp’s banking division to ANZ Group could be more likely to gain approval from the Tribunal.

This comes after the Australian Competition and Consumer Commission (ACCC) blocked ANZ Group’s A$4.9 billion buyout of Suncorp’s banking arm last Friday.

According to Citi, the ACCC’s decision not to allow a merger authorisation for the sale is likely to postpone the transaction by at least six to nine months.

However, the brokerage expects Suncorp to mostly meet FY23 guidance at their upcoming yearly results.

Citi has maintained a target price at A$14.90 and retained a ‘buy’ rating.

Of the 12 analysts monitored, all rate the stock as ‘buy’ or higher, with a median projected target of A$14.95, according to Refinitiv data.

The stock has seen a 17.4% growth this year, as of the last close.

Suncorp (ASX:SUN) is an Australian finance, insurance, and banking corporation.