Australia & New Zealand Banking Group Ltd.
ANZ,
-1.32%
said it has agreed to buy regional lender Suncorp Bank for about 4.9 billion Australian dollars ($3.3 billion), in a deal that could accelerate growth of its retail and commercial businesses. The acquisition of Suncorp Bank from Suncorp Group Ltd.
SUN,
+6.04%
will be funded by selling new shares to raise about A$3.5 billion and from existing capital, ANZ said Monday. The entitlement offer price of A$18.90/share is a 12.7% discount to ANZ’s last closing price.
Suncorp Bank, based in Australia’s Queensland state, has a home loan portfolio of about A$47 billion and A$45 billion in deposits. ANZ said the deal will boost growth of its retail and commercial businesses and also improve the geographic balance of its business in Australia.